TMI Blog2017 (11) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... consequences. Admittedly, the degree or diplomas are issued by the Universities or the main organization to which the college or an institute or a centre is affiliated - the degree or diploma being issued by University of London can be considered at par while interpreting the scope of commercial training or coaching centre. Whether such a degree or diploma is recognized by law for the time being in force? - Held that: - the department has been taking consistently a view that when an educational institute is affiliated to a university/institution awarding a degree recognized by law, then the said institute is not a commercial training or coaching centre. Reference can be made to circular No.26/2003- 28.08.2012 and 26.02.2010 of the Board. Admittedly, the appellants were providing course resulting in the award of B.Tech, BBA, MBA of Allahabad Agricultural Institute (deemed university). No demand for Service Tax has been made in respect of these courses. Even on this ground, the appellants can not be considered as commercial coaching or training centre - Apart from the fact that the appellants will fall outside the purview of commercial coaching or training centre, I find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loyment to post and services under the Central Govt. vi. Rule 12 of Central Excise (Appeal) Rules, 2001, in its Explanation also makes a mention of University of London as the recognised university, whose degree is being recognised as eligible qualification for the authorised representative . vii. In support, She relies on the following case laws:- (a) IILM Academy of Higher Learning Vs. CCE, Jaipur [2012 (27) STR 136 (Del.-Tri.) (b) Institute of Clinical Research (India) Vs. CST, Delhi [2013 (6) TMI 562 CESTAT NEW DELHI] (c) Apex Institute of English Vs. CCE, Guntur [2011 (12 Taxmann.com 416 (Bangalore CESTAT)] (d) ICM English Centre Vs. CST, Bangalore [2012 (25) Taxmann.com 484 (Bangalore CESTAT)] 4. The Ld. Consultant also submits that the extended period cannot be invoked against them as there is no prima facie intention to evade on the part of the appellant. 4.1 Ld. Departmental Representative reiterates the findings given by the lower authorities. 5. We have carefully gone through the records, submissions made by both parties and the case laws cited by them. 5.1 Revenue has confirmed the demand of service tax against the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given in Section 65(27) of the Final Act, 1994. The case laws cited by the ld. consultant in support of the appellant s case are of no help and do not support the stand of the appellant. 5.2.1 The Order-in-Original mentions that the appellant has been showing the income from the respective courses for the period from 2003-04 to 2007-08 for which the Show Cause Notice was issued on 20.04.2009 by Commissioner, S. Tax, Delhi. The appellant pleads that there has been no willful suppression of material facts relating to non-payment of service tax on the various courses run by them and there has been no intention on their part to evade the payment of service tax; further they were under the bona fide belief that the services rendered by them were not liable to service tax during the said period and accordingly they accounted the same on the books of accounts; the same was observed during the audit. When the facts are so, the extended period of limitation cannot be invoked against the appellant under Section 73 of the Final Act, 1994. With above facts, the appellant pleads that service tax is not payable for the period beyond one year. 5.3 From the record we find that the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned orders along with confirmation of interest and imposition of penalties. 9. Learned advocate appearing for the appellant has drawn our attention to the definition of commercial training or coaching centre as appearing in section 65(27) of the Finance Act, 1994. As per the said definition and as per the exclusion clause relating to Institute issuing any certificate or diploma or degree or any educational qualification recognized by law , does not get covered under service tax net. As such, the crucial point required to be examined in the present appeal is as to whether courses offered by the appellant leading to award of degree by the Allahabad Agricultural Institute and London School of Economics and Political Science are courses recognized by law for the time being in force so as to exclude the same from the levy of Service Tax. 10. Learned brother Shri Aarya has observed that the appellant was mainly rendering the courses leading to award of degree from University of London and Allahabad Agricultural Institute which are recognized by certain Universities of India as mentioned in the provisions of Association of Indian Universities but as the appellant is not award ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r University of Allahabad are the degree which are recognized by law for the time being in force and as such, would get included in the exclusion clause of the definition. 13. Infact, I find that the adjudicating authority in the impugned order has also observed that the Although the noticee is affiliated to London School of Economics, all exam are conducted by LSE and certificates and diplomas are being issued by LSE which are recognized by all the national universalities, however as an adjudicator being a subordinate body of the Government of India no powers have been vested in me to expand the scope of the circular and the same is binding on all the field formations , and has chosen to follow the Board s circular No. 107/01/2009-ST dated 28.1.09. Apart from the fact that such Board s circulars are not required to be followed blindly by the adjudicating authority, unless they are in favour of the assessee, I also note that said circular does not clarify the said issue. The same interprets the term recognized by law for the time being in force as a degree /diploma / certificate specifically recognized by statutory authorities such as UGC / AICTE. UGC grants recognition to un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofessional councils like AICTE, Medical Council of India, Bar Council of India etc. would be beyond the purview of service tax. 15. As already observed that the adjudicating authority has concluded that the degree being awarded by the LSE are recognized by all the national universities, but has still not extended the benefit to the appellant by the sole reliance on the Circular. It is well settled that the adjudicating authority is under a legal obligation to examine quasi judicial issue independently and not to follow the Boards circular blindly. Reference in this regard may be made to decision in the case of DLF Limited vs CST, Delhi [2012 (27) STR 512 (Tri-Del)]. Infact I find that Commissioner (Appeals) in the same assessee s case vide his order-in-appeal No. 28/SVS/GGN/2014 dated 30.1.14 has examined the issue in detail and has concluded that the courses offered by the appellant are recognized by law in India and as such, appellant would fall outside the ambit of Commercial or coaching centre in so far as LSE courses by the appellant are concerned. No appeal stand filed by the Revenue against the said order of Commercial (Appeals) and the same has attained finality. Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who already has the required skill. Therefore, such institutes are not covered under the exemption. He has further observed that notification No. 24/2004-ST dated 10.9.2004 exempts vocational training institute which provides vocational training or coaching that impart skills to enable the trainee to seek employment or self employment directly after such training or coaching. The said exemption was withdrawn vide Notification No. 3/2010-ST dated 27.2.2010 by which the meaning of Vocational Training Institute has been changed to Industrial Training Institute or an Industrial Training Centre affiliated to the National Council for Vocational Training, offering courses in designated trades as notified under the Apprentices Act, 1961. He has accordingly observed as under: 19. However, it is to be noted that these provisions and subsequent amendments thereof would be applicable to vocational training institutes which exclusively prepare applicants for Board examination However, it is to be noted that threes provisions and subsequent amendments thereof would be applicable to vocational training institutes which exclusively prepare applicants for Board examinations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e present appeal relates to tax liability of the appellant. In respect of two main activities, namely, (a) fees received for offering courses of London School of Economics (University of London) resulting in issue of degree by the University of London and (b) Fee received for coaching provided for Business English and Personality Development. The present appeal is against confirmation of demand of service tax against the appellant under the category of commercial coaching or training service. The case was decided by the Division Bench and as per Interim Orders No.15-16/2017 dated 09.02.2017, the following difference of opinion was framed for reference to the third member: Demand within the limitation period is required to be upheld, as held by learned Member (Technical) or the entire demand has to be set aside as held by learned Member (Judicial). 3. The case is listed for resolving the said difference of opinion. I have heard Ms Lalita Krishnamurthy, ld CA on behalf of the Appellant and Mr Ranjan Khanna, ld AR on behalf of the Revenue. I have perused the appeal records, Including written submissions and various case laws relied upon by both the sides. 4. The Member (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sity of London can be considered at par while interpreting the scope of commercial training or coaching centre. 6. The next question is whether such a degree or diploma is recognized by law for the time being in force. Here, the reason discussed by Member (Judicial) is proper and sustainable. The UGC and AICTE etc are recognizing bodies of a University or an institution. The degree or diploma awarded by these institutions are being considered as recognized by law for time being in force. In this connection, we note the position has been clarified regarding the scope of the term qualification recognized by any law will include such course as are approved or recognized by any entity established under a central or a state law, including delegated legislation, for the purpose of granting recognition to any education course. 7. Further, it is seen that the Ministry of Human Resource Development vide their notification dated 13.03.1995 stated that the Govt. of India had decided that those foreign qualifications which are recognized/equated by Association of Indian Universities are treated as recognized for the purpose of employment to posts and services under the Central Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployment or undertake self-employment, directly after such training or coaching. Admittedly, the appellants are engaged in providing coaching in English, French and German language skills. Training included improving the skills of pronunciations, manner of speaking etc. The original authority recorded that this sort of training imparted by the appellant helps in getting employment for the participant in Multi National Companies and various Corporation/Institutions where improved particular skill in speaking is required qualification. We are in agreement with the findings recorded by the original authority. The impugned order has at length examined the provisions of Section 3(2) of the Official Language Act, 1963, Article 343(2) of Constitution of India and the status of English in India. We find that the whole discussion is misplaced and irrelevant to decide the taxability of the appellant under commercial coaching or training . As rightly contended by the appellant, it is not the status of the English, but the nature of coaching given by appellant which is relevant to decide the exemption under notification. Neither the tax entry nor the exemption notifications are having referen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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