TMI Blog2015 (7) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... I] followed - the appellant therein had correctly remitted service tax on the amount received for rendition of commercial coaching or training services i.e. 80% of the amount paid by students. - Decided in favour of assessee. Disallowance of cenvat credit - Denial of refund claim - Input service was received prior to registration of the appellant as a service provider - Held that:- Decision in the case of mPortal India Wireless Solutions P. Ltd, vs. C.S.T., Bangalore reported as [2011 (9) TMI 450 - KARNATAKA HIGH COURT] followed - registration is not mandatory for the availment of credit. On the basis of this binding authority, the concurrent denial by the authorities below of credit of ₹ 2000/- is also unsustainable and requires t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. Under the agreement, the appellant was appointed as the franchisee of Aptech to impart training in information technology, imparting content and programmes for providing training in computer based information technology comprising software modules developed by Aptech under the brand name Arena Multimedia . To the extent relevant and material for resolution of this lis, the franchise agreement provides that Aptech shall be entitled to royalty equivalent to 20% of the course fee which means fee for training provided by the appellant on behalf of APTECH under the terms of the agreement. Section 4.2 of the franchise agreement stipulates that the escrow account opened under an earlier agreement in the name of Aptech Ltd. shall be the acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for providing the taxable services is not 80% of the amount received by it from the escrow account but 100% collected by the appellant and deposited into the escrow account. This is the only dispute presented before me. 6. The authorities below concurrently ruled that since the appellant had provided the taxable service i.e. commercial coaching and training, the entirety fees remitted by students should be considered as the gross consideration received for rendition of the service and that consideration is liable to tax under provisions of Sections 66 and 67 of the Finance Act, 1994. 7. On true and a fair consideration of the terms of the agreement between the appellant and M/s Aptech Ltd., both of which are independent corporate ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n identical factual circumstances of another entity, similarly situate as the appellant herein and providing commercial training and coaching service under a franchise agreement also with Aptech Ltd., the Tribunal in Kunal IT Services Pvt. Ltd. vs. C.C.E., Pune III , a decision reported as 2015 -TIOL -723- CESTAT- Mum held that the appellant therein had correctly remitted service tax on the amount received for rendition of commercial coaching or training services i.e. 80% of the amount paid by students. 10. In the circumstances above, the confirmation of demand of ₹ 76,125/- by the primary and lower appellate authority towards service tax liability cannot be sustained and is accordingly quashed. 11. The other issue is with regar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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