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2015 (6) TMI 785 - CESTAT NEW DELHI

2015 (6) TMI 785 - CESTAT NEW DELHI - TMI - Pre-licensing training and coaching to the prospective insurance agents - Sponsored by Insurance companies - Held that:- In the case of NIS Sparta Ltd. [2015 (1) TMI 504 - CESTAT NEW DELHI] it was held that the training imparted by the appellants does not fall under the ambit of Section 65(27) of the Finance Act, 1994 as the training imparted by the appellant is having the recognition of law and covered under exclusion clause of Section 65(27) of the F .....

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R K Singh, Member (Technical),JJ. For the Appellants : Shri B B Sharma, AR For the Respondent : Shri Rupendra Singh and Shri Abhishek Baghel, Advocates ORDER Per Ashok Jindal : Assessee as well as Revenue are in appeals against the impugned order which is for the period July 2003 to March, 2007 and the assessee is also in appeal against the order of Commissioner (Appeals) for subsequent period i.e. October,2007 to March, 2010. 2. As issue involved in all the appeals is common, therefore, all ar .....

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from the department, the assessee paid the service tax on personality development training and educational training. That part of the proceeding is not disputed before us. 4.1 Apart from this the assessee is providing training to candidates who intent to become insurance agents. There candidates are getting training from the assessee instead of insurance companies who sponsor them and pays to the assessee for providing training to the candidates. To become insurance agent, it is mandatory in la .....

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, training and examination by the Insurance agent under Section 114 A of the Insurance Act, 1938. As per IRDA (License of Insurance Agent) Regulation, 2000 approves and notifies certain Institutions as approved institutions within the meaning of Regulation 2(b) of said Regulation. The assessee is an approved institution as per IRDA Regulation. To obtain a license, Regulation 3(1) prescribed that the candidate is to apply by making an application, Regulation 3(ii) prescribed that the candidate sh .....

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training to the candidates who desirous to become Insurance Agent and issues a certificate for completion of training and on the basis of that certificate the candidate is entitled to appear in the examination conducted as per Regulation 6 of the said Regulation, thereafter who passes the exam becomes the Insurance Agent. The assessee did not pay service tax on their activity on the premise that they are not liable to service tax on their activity. But investigation conducted by the Revenue, it .....

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were also made. Adjudication took place, the proposals made in the Show Cause Notice were confirmed by converting into the demand of service tax along with interest and imposing various penalties on the appellant under the Finance Act. Aggrieved for the said order, the assessee is before us. 5. Thereafter, two more show cause notices were issued to the appellant for the period July, 2003 to March, 2007 and October, 2007 to March, 2010 for demand of Service tax along with interest and proposal of .....

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he period subsequent to that, penalty was confirmed for the normal period of limitation under section 78 ibid. 6. The assessee is in appeal against the impugned orders demanding service tax under the category of commercial training and coaching services, along with interest and imposition of penalty under section 76 for the earlier period and penalty for the normal period and Revenue is in appeal against dropping of penalty by the learned Commissioner (Appeals). 7. Heard the parties. Considered .....

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gineering (supra) wherein the facts were like as under: 3. It is inter alia the case of the petitioner : (ii) that the petitioner issues a certificate approved by the DGCA to candidates who successfully complete the approved training curriculum and successfully pass the examinations as per the approved course syllabus; (iii) that the DGCA fully controls such training institutes by prescribing syllabus, number of seats per session, manner in which the exam is to be conducted as well as the manner .....

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ommercial training or coaching as a taxable service; In these set of facts, the Hon ble High Court has examined the issue and observed as under : 20. The position which thus emerges is that :- (A) That successful completion of Aircraft Maintenance Engineers course from an approved training school by itself does not authorize such candidate to certify the airworthiness of an aircraft or its repair or maintenance. For the same, an examination to be conducted by the DGCA is to be passed. (B) For ap .....

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Rules and CAR provide for approval of institutes such as the petitioner s. DGCA regulates the course content offered by such institute and gives relaxation to the successful candidates from such institutes in the matter of taking the examination to be conducted by the DGCA for grant of authority/license to render services of aircraft repair and maintenance and to certify the aircraft s airworthiness. Though qua the fee etc. to be charged by such institutes there does not seem to be any restricti .....

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nferred by law or conferred by statute . Thus even if the certificate/degree/diploma/qualification is not the product of a statute but has approval of some kind in law , would be exempt. 24. Recognize is defined, in the Black s Law Dictionary, 8th Edition as confirmation of an act done by another person as authorized, formally acknowledging the existence; and, in Concise Oxford Dictionary as acknowledging the existence, validity or legality of. 26. There can be no doubt that such recognition thr .....

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enerally is a body of rules which have been laid down for determining legal rights and legal obligations which are recognized by Courts. Similarly, in R.S. Nayak v. A.R. Antulay - (1984) 2 SCC 183 it was held that law includes any Ordinance, By-law, Rule, Regulation, Notification, Custom or Usage having force of law. The Rules and CAR aforesaid have been enacted in exercise of legislative power as aforesaid. 27. The reasoning in the impugned Instruction dated 11th May, 2011 that because the qual .....

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the field to which the qualification relates, a further examination held by a body regulating that field of practice is to be taken. Immediate instance can be given of the qualification in the field of law. Though by amendment of the recent years, the right to practice law on the basis of the said qualification has been made subject to clearing/passing a Bar Exam to be held by the Bar Council of India, the same does not make the qualification of law not recognized by law. The recognition accord .....

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