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TMI Blog2014 (8) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... to the construction workers for upgrading their skills. The training programmes organized by the appellant were recognized by IGNOU for certification purposes. The fees from the trainees was collected directly by the CIDC and reimbursed to the appellant. The Department was of the view that the training fee received by the appellant for imparting training to the construction workers for upgradation of their skills is taxable under Section 65(105)(zzc) read with Section 65(27) as Commercial Training or Coaching Service. Though the appellant pleaded that this activity is exempt from Service Tax under Notification No. 23/2001-S.T., dated 29-4-2001 and also under Notification No. 24/2004-S.T., dated 10-9-2004, but the Department was of the view that these exemption notifications are not applicable to them. The Service Tax demand along with education cess totalling Rs. 1,17,02,437/- against the appellant is on this basis. 1.2 It was also found by the Investigating Officers that CIDC in terms of its agreement with Oil and Natural Gas Commission (ONGC), was to develop cost index, cost data base and costing software as per the specific requirements of ONGC and also upgradation and mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Counsel for the appellant, pleaded that the training being imparted to construction workers for upgradation of their skills is fully exempt from Service Tax under exemption Notification No. 24/2004-S.T., dated 10-9-2004, as this training is vocational training and, hence, the appellant have to be treated as vocational training institute, that in respect of this training, the syllabus of the training, competency standards and performance levels to be achieved and training and testing procedures have been prepared by CIDC in collaboration with IGNOU and have been provided to the appellant and the appellant have conducted these courses accordingly, that from the content of these courses, it is absolutely clear that these courses are vocational courses aimed at improving and upgrading the skill levels of construction workers, that the Commissioner's finding that the appellant are not a vocational training institute and the courses being conducted by them for construction industry workers are not vocational courses is totally incorrect, that as regards the job of development of cost index and upgradation of cost data of ONGC, for this job, CIDC had entered into an agreement with ONGC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l amount received for this job from ONGC, since this job was sub-contracted by the CIDC to the appellant company for which the appellant company received 90% of the amount received by CIDC from ONGC, the appellant company as sub-contractor would also be liable to pay Service Tax on the amount received by them from CIDC. With regard to Service Tax demand of Rs. 41,668/- on the renting of Immovable property, it was pleaded that even if the property not owned by the appellant was sublet by them, service' tax under Section 65(105)(zzzz) read with Section 65(90a) would be attracted. He, therefore, pleaded that the appellant have not been able to establish prima facie case in their favour and, hence, this is not the case for waiver from the requirement of pre-deposit. 5. We have considered the submissions from both the sides and perused the records. 6. The Service Tax demand of Rs. 1,17,02,437/- is on the amount received by the appellant for imparting training to construction workers under a skill development plan of the Government of India. Under this scheme, CIDC in association with IGNOU prepared the syllabus of the courses, competency standards and performance levels to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification exempted taxable service provided in relation to commercial training or coaching by a "vocational training institute" to any person from the whole of the Service Tax leviable thereon. The term "vocational training institute" as defined in this notification means a commercial training or coaching centre which provides vocational training or coaching that imparts skills to enable the trainees to seek employment or undertake self-employment directly after such training or coaching. The training programmes being organized by the appellant company are meant for construction workers and the purpose of these programmes is the development of their skills which was improves their market value. In our prima facie view, these training programmes enable the trainees to seek employment or undertake self-employment directly after such training and, hence, the appellant for the purpose of this notification have to be treated as "vocational training institute" and they would be covered by the exemption Notification No. 24/2004-S.T. Therefore, we are of Prima facie view that the Service Tax demand of Rs. 1,17,02,437/- is not sustainable and in respect of this demand which is the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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