TMI Blog2015 (8) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... beyond the limitation period are liable to be set aside as per the ratio of majority decision in the case of Shri Chaitanya Educational Committee (2015 (6) TMI 627 - CESTAT BANGALORE (LB)). Since the demand for extended period is set aside consequently, interest and penalties are also get set aside. Claim as regards reduction of service tax liability on hotel fees and refund of fees which they have claimed as per the approval of the All India Council of Technical Institute for Indira College of Science needs to be considered in its correct perspective. The claim of the appellant that reduction of hotel fees and refund fees and cum-tax is upheld by the Tribunal in the case of I2IT Pvt. Ltd. (2014 (9) TMI 345 - CESTAT MUMBAI) is correct a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the provisions of Section 78 of the Finance Act, 1944. 3. Learned Counsel appearing on behalf of the appellant would draw our attention to the facts of the case. It is his submission that in respect of show-cause notice dated 31.01.2007, the period of demand is from 01.09.2005 to 31.03.2006 and would be within the limitation and in respect of show-cause notice dated 21.08.2008 demand within the period of limitation would be 1.04.2007 to 31.03.2008. He would submit that the other demands raised in both the show-cause notices are hit by limitation. He would submit that during the relevant period, question as to whether charitable institute would be considered under the category of Commercial Training or Coaching Services was agitated be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her submission is that one demand in respect of Teaching English as one of foreign language is also involved in this case. It is his submission that the amount received as fees for teaching English are covered under the provisions of Notification 9/2003-ST as vocational training as also CBEC Circular dated 20.06.2003. He also claims question of limitation on this point. 4. Shri K.S. Mishra, learned D.R. on the other hand would draw our attention to the findings recorded by the adjudicating authority. It is his submission that appellant had got themselves registered under the category of Commercial Training or Coaching Services on 6.6.2006 but neither they filed any returns nor they informed the department about nature of their activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able for service tax liability under the category Commercial Training or Coaching Services. 6.1 Now reverting to the claim of the appellant that the demand of service tax liability beyond the period of limitation in both the show-cause notices is hit by majority decision of the Tribunal in the case Shri Chaitanya Educational Committee v. CC - 2015-TIOL-1175-CESTAT-Bang. We find that this submission is having a strong force. In that case there was a difference of opinion between the Members and the 3rd Member held that there being quite a few judgements during the relevant period holding as to that charitable institutes cannot be taxed under Commercial Training or Coaching Services, would help the appellant in claiming the benefit of exte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse, we do find that in that case also the tax liability within the limitation period, upheld by the Tribunal in the case of Prof Ulhas Vasant Bapat (supra) would apply, but the extended period cannot be invoked. 6.4 In respect of the question of imposition of penalty under Section 78 within the limitation period, we hold that the judgement of the Tribunals majority decision in the case of Great Lakes Institute of Management (supra) being applied and the penalties which are imposable under Section 78 are set aside. Interest on the service tax liability needs to be recalculated by the adjudicating authority for within the limitation period and has to be discharged by the appellant. 6.5 With the above observation, we dispose of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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