TMI Blog2017 (3) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... f Diploma Certificate by Edexcel. There is no representational right in the scheme of things, as laid down in the agreement - demand set aside. Valuation - inclusion of various reimbursable expenses in the tax value under the category of franchisee services - Held that: - the agreement entered into by the appellant-assessee with various franchisees clearly provides for re-imbursement of various expenses, on actual basis, by the franchisee to the appellant assessee. A perusal of the contract reveals such arrangement - demand set aside. Appeal allowed - decided in favor of appellsnt-assessee. - ST/331, 401 & 402/2011-ST [DB], ST/336/2012-ST [DB], ST/ 2630 & 2631/2012-ST [DB], ST/350/2011-ST [DB] and ST/2653/2012-ST[DB] - ST/A/52442-52449/2017-CU[DB] - Dated:- 20-3-2017 - S. K. Mohanty, Member (Judicial) And B. Ravichandran, Member (Technical) For the Appellant : Mr. N. Venkataraman, Sr.Advocate, Mr. Pravesh Khandelwal, Advocate Present For the Respondent : Mr. Ranjan Khanna, D.R. Mr. Sanjay Jain, D.R. ORDER Per: B. Ravichandran This bunch of 8 appeals are taken up together as they are dealing with common dispute involving the same appellant - ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Determination of Value) Rules, 2006 read with Section 67 of the Finance Act, 1994. The demand, however, was restricted to the normal period holding that there is no suppression of fact on the part of the appellant - assessee. The appellant - assessee preferred appeals against these findings on service tax liability. 5. The Revenue s appeals are against the subsequent adjudication order wherein the demand against the appellant assessee under the category of commercial coaching and training was dropped by the original authority. The second appeal of the Revenue is against dropping of demand for extended period and for non-imposition of penalty under Section 78, on the appellant - assessee. 6. The ld. Sr. Advocate appearing on behalf of the appellant- assessee submitted mainly on the following ground:- (a) The appellant - assessee are engaged in providing vocational training to various participants in the field of aviation, hospitality and travel management. The courses offered by the appellant - assessee are of specialized nature. They result in the participant s gaining the employment in specialized field of activities like aviation, hospitality, industry or travel m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... training which will enable the participant to have gainful self-employment. In order to consider the appellant - assessee as Vocational Training Institute it is necessary that the trainees should have opportunity to seek employment or to undertake self-employment. In the present case the courses offered by the appellant - assessee do not provide the opportunity to the trainees to undertake self- employment directly after the training or coaching. These courses provide opportunities of employment only. Regarding payments made to Edexcel, U.K., the ld. A.R. submitted that the appellant - assessee is conducting courses, which result in issue of Diploma by Edexcel. The standard of course and the required skill levels are all pre-determined in terms of the agreement entered into by the assessee - appellant with Edexcel. The appellant - assessee is using the name of Edexcel and the original authority correctly held them as representing Edexcel in India. On reimbursable expenditure the ld. AR submitted that the expenses incurred by the appellant - assessee is very much includible in the tax value for the purpose of tax liability under franchisee service. These are essential expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... courses offered by M/s. FASPL, in respect of aviation, hospitality and travel management, help in developing the skills of a trainee to enable him/her to seek direct employment or engage in self-employment in a specific area of travel and hospitality industry. For example after completing the course for air hostesses, a trainee could seek employment in that specific field of the airlines industry. I further find that the training programs under aviation, hospitality and travel management improve the chances of a trainee to get employment in that specific industry over a generalist (say common graduates); and also impart skills to go for self-employment, on account of skills acquired by the trainees. Such training course is commonly known and understood as a vocational course in trade. For availing of the exemption granted under the notification, a commercial training or coaching institute , has to satisfy the condition, as per the definition of Vocational Training Institute given in the above said notification and accordingly should provide training to impart skills which enables the trainees to seek employment , or to undertake self-employment . In the present case, after going ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the agreement. It stipulates that Edexcel shall provide training exclusively to Frankfinn. For any Edexcel qualification in India aimed at target sector clause 11, 12, 13 and 14 of the agreement stipulate that Edexcel shall send a member of staff from U.K. to deliver staff development for BTEC programmes; Shall provide training material to the faculty members to be trained and also provide technical assistance in completing Centre approval and qualification approval forms required to be completed for becoming a BTEC Centre and to offer BTEC qualification. It is also stipulated that Edexcel shall provide prompt advisory support through nominated staff in U.K. to assist the centre in the operation and management of the BTEC qualifications. The agreement further stipulates that appellant-assessee shall comply with all the terms and conditions laid down in the BTEC International approval (BIA) Form and as agreed with Edexcel from time to time. Clause 49 of the agreement permits the appellant assessee to use Edexcel name or trade-mark for the purpose of promoting its Diploma and Edexcel s BTEC - HNC to call the course Frankfinn s one year Diploma in aviation, hospitality and travel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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