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TMI Blog2014 (9) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial Training or Coaching over the past 10 years. 3.1. The definition of 'Commercial Training or Coaching' when it was introduced was Commercial Training or Coaching means any training or coaching provided by a Commercial Training or Coaching centre; 'Commercial training or coaching centre' means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by law for the time being in force." W.e.f. 01.05.2011, the definition underwent a change and the definition read as under: 'Commercial training or coaching centre' means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes." 3.2. In addition to the above on 01.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed fee for each type of course. * AIEEE and IIT related coaching provided by the appellants is not related to education required for obtaining Intermediate certificate issued by the Board of Intermediate education. * As per the Academic Organizer issued by the Board of Intermediate Education, the fee prescribed for the year 2011-12 is Rs. 1,453/- (for 1st year) and Rs. 1,598/- (for 2nd year). However, the fee collected by the appellants is more than the fee as prescribed supra. * As the Academic Organizer has prescribed the fee structure for imparting Intermediate Education and no additional fee has been prescribed for EAMCET, the additional amounts charged are for coaching students for competitive entrance examinations like IIT, AIEEE and coaching for EAMCET beyond the guidelines given by the Board of Intermediate Education. * There are two aspects to the activity of the appellants (i) imparting lessons prescribed in the curriculum of the Board of Intermediate Education; and (ii) training and coaching for competitive exams. Therefore, the entire fee collected from the students is attributable only to the above two activities which is taxable under the category of Commercia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel. * Notification No. 33/2011 dated 25.04.2011 exempts coaching or training leading to the grant of a degree/certificate or diploma or any educational qualification recognized by law. Reliance placed on T-rolls, conduct certificate and transfer certificates which establishes that the activity of the appellants is leads to the issuance of a certificate recognized by law. * Fee collected by the appellants cannot be artificially split as it is in the nature of a composite activity. * The core activity of the appellants is providing formal education. Therefore in terms of Section 65A(2), an activity shall be classifiable under the category which gives the activity its essential character. * Students are not eligible for a certificate from the Board unless they complete the entire programme provided by the appellants. The Academic planner itself prescribes for such coaching. * The appellants are a private unaided institution recognized by the Government of Andhra Pradesh. The Board only prescribes the maximum tuition fee which is applicable to all colleges (government/aided/unaided colleges). * Fee, higher than the amount prescribed by the Board, is collected even from s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tudents leading to the educational qualification/certificate is definitely exempted. However the question that arises is whether we can consider that the classes/coaching conducted by the appellants is a composite course and it cannot be vivisected for the purpose of levy of service tax. Appellants have started the new system from 2011 whereby they do not charge separate fee for the entrance exams but a composite fee is charged which includes intermediate course as well as the courses for the entrance exams. The question that arises is the additional classes, additional coaching, additional efforts made by the appellant through the colleges has to be considered as a part of intermediate course. There cannot be any dispute and there is no dispute also if a separate coaching centre is set up now for the purpose of entrance exams etc, such services will be liable to tax. Just because a similar course is provided by an educational institution and separate fee is not charged, but an enhanced fee for intermediate course itself is charged and the fee varies depending upon the course taken by the students can we say that such fee should not be separated and charged to levy of service tax?& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant had submitted a worksheet and in the work sheet, the appellants had excluded the games fee, lab fee, Internal Exam fee/charges, sale of applications, PRO collection A/c, and other fee. We are unable to understand nor did we ask the learned counsel to explain the nature of PRO collection fee and other income fee in view of the fact that these two fees did not really amount to substantial portion of the demand. Therefore we have left it for the final hearing to understand. As regards lab fee and Internal Exam fee/charges, it was submitted by the learned counsel that whether it is for engineering or medical entrance exam, laboratory is a must and the type of laboratory required for ordinary intermediate course and for entrance course could be different. Further he also submitted that more than Rs. 141 crores has been realized for Internal Exam fees which shows the importance attached to the Internal Exams by the appellant. Frequent conduct of examinations, feed back of such examinations and repeated exams no doubt would enhance the ability of the candidates to face the entrance exam and complete it successfully. Therefore we find some substance in the arguments of the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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