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TMI Blog2017 (11) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... ourses which lead to award of degrees of University of London, Allahabad Agriculture Institute (deemed University) ii. Along with above courses, they also run British English Certificate course and personality development courses. iii. The degrees awarded by University of London and Allahabad Agriculture Institute for their courses are equivalent and at par with undergraduate and Honours degrees of various universities. iv. The degrees awarded for the appellant"s courses by University of London have been mentioned as equivalent to the corresponding degrees like B.Sc. and B.A.(Hons.) of University of Delhi and other universities in the title "Equivalence of Foreign Degrees". The Association of Indian Universities (AIU) is the only body in India which is recognised to grant Equivalence of Degrees awarded by the foreign universities. v. Acknowledging its role and work, the Ministry of Human Resource Development, Govt. of India vide their letter No.F.15-17/94-TS IV dated 13.03.1995 issued a Notification that those foreign qualifications which are recognised/equated by the AIUU are treated as recognised for the purpose of employment to post and services under the Central Govt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablishment who are conducting the courses where degrees like B.Sc., BBA, MBA are awarded by University of London, Allahabad Agriculture Institute, though they are running some additional courses also on English teaching and personality development. It is a fact that the appellant is mainly running courses leading to awarding of degrees by University of London and Allahabad Agriculture Institute, and which are recognised by certain Universities in India as mentioned in the brochure of AIU. However, the appellant itself does not issue any kind of diploma or degree, which is recognised by law for the time being in force. In other words, the appellant is not covered in the exclusions mentioned in Section 65(27) of the Act. To make the matter more clear it is not in dispute that the degree/diploma for the courses run by the appellant are issued awarded either by University of London or by Allahabad Agriculture Institute, but when the appellant itself is not issuing any diploma or degree certificates recognised by law, it is not excluded from the definition of "Commercial Training or Coaching Centre" given in Section 65(27) of the Final Act, 1994. The case laws cited by the ld. consulta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to deal with the same. 7. As per facts on record, the appellant is registered with the Service Tax department under the category of "Commercial training and coaching services". As per the audit conducted by the department, it was found that appellant was discharging the Service Tax liability on various services rendered by them, but Service Tax was not being paid in respect of courses leading to award of degrees by Allahabad Agriculture Institute (Deemed university) as also to degree courses where the degrees were being provided by the University of London (London School of Economics and Political Science). Further, no tax was paid on the business English certificate (BEC) course from University of Cambridge, ECO as examined and personality development courses, by treating the same as vocational training course. 8. In the above factual background, proceedings were initiated against the appellant by way of issuance of two show cause notices dated 20.4.09 and 6.7.09, proposing confirmation of service tax in respect of above activities. The said proposal stand confirmed by the impugned orders along with confirmation of interest and imposition of penalties. 9. Learned advocate appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s recognized for the purpose of employment to post and services under the Central Government". 12. What is the meaning of recognized by law ? The said issue stand discussed by the Hon"ble Delhi High Court in the case of Indian Institute of Aircraft Engineering vs. Union of India [34 Taxmann.com 191 (Delhi HC)] wherein it was observed that the expression "recognized by law" is a very wide one and stands used by the legislature in contra distinction to use the expression "conferred by law" or conferred by statute. As such, any degree, diploma or certificate issued by a foreign university or institutes recognized by AIU has to be treated as a certificate "recognized by law" for the time being in force. It is also seen that by Notification No. 43No.F 18-23 /92-TD.V/TS-IV dated 01.03.1995 for 2009 -2010 attached as Appendix 6 HRD Ministry, Government of India has declared that the equivalence of degrees/ diplomas awarded by AIU will be valid for the purpose of higher education as well as employment in India. As such, in my views, the degree awarded by University of London or University of Allahabad are the degree which are recognized by law for the time being in force and as such, woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant has drawn our attention to a website of UGC which has issued an advisory for Indian students seeking admission in foreign universalities/ institutions which states that all Indian students wishing to pursue the study abroad may contact the Association of Indian Universities at the given address, for information regarding the accreditation status of foreign universities and the valuation and equivalence of degrees and diplomas awarded by the accredited universities abroad. This establishes that the Association of Indian University (AIU) is the statutory authority to determine the status of a Foreign university"s degree and if a degree is recognized by AIU then it is recognized by law. The fact that Circular in question, uses the words "such as UGC, AICTE" does not mean that recognition by other bodies like AIU would not be proper. Infact Circular DOF No. 334/1/2010 - TRU dated 26.2.2010 clarifies that the university created under a Central or State Act, institutes recognized by UGC as universities or deemed universities, institutes granted recognition professional councils like AICTE, Medical Council of India, Bar Council of India etc. would be beyond the purview of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 10.9.2004 (as amended). By definition, such institutes should provide training or coaching that imparts skill to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching. Disputes have arisen in respect of institutes that offer general course on improving communication skills, personality development, how to be effective in group discussions or personal interviews, general grooming and finishing etc. It is claimed that such training or coaching improves the job prospects of a candidate and therefore they are eligible for exemption as vocational training institutes. However, a careful reading of the definitions shows that the exemption available only to such institutes that impart training to enable the trainee to seek employment or self-employment. The courses referred to above do not satisfy this condition because on their own such courses do not prepare a candidate to take up employment or self-employment directly after such training or coaching. Then only improve the chances of success for a candidate who already has the required skill. Therefore, such institutes are not covered under the exemption. He has further observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved the said decision of the Commissioner (Appeals) stand accepted by the Revenue and as such, I am of the view that even in respect of said courses, no service tax liability would stand imposed on the appellant. Accordingly, in my view the appeal has to be allowed in totality. ( Archana Wadhwa ) Member (Judicial) Difference of Opinion 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). M/s ITM International (P) Ltd Vs CST Delhi Appeal No.ST/825, 960/2010 Interim order-57-58/2017 DOH: 28.04.2017 Dt of Pronouncement 04.07.2017 Per B. Ravichandran This appeal is referred to the third member due to difference of opinion between the members in the Division Bench while deciding the case. 2. The appellants are engaged in the field of education and coaching. They are registered with the ST department under the category of "Commercial Training or Coaching Services". The dispute in the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e degrees/diplomas are to be considered as recognized by the law for the time being in force. It is noted that inference that degree or diploma or any educational qualification should be issued by commercial trainee or coaching Centre itself, is too literal interpretation of the statute. It is a well known fact that the colleges in India provide courses resulting in degrees or diplomas but the said degree and diplomas are issued by the University or the main Institute to which these colleges are affiliated. If it is to be held that as the degree is not issued by the college which is providing course, the college should be considered as a "commercial trainee or coaching centre", subjected to service tax, such interpretation will result in absurd 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. Keeping this in the background, it can be seen that 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. 6. The next question is whether such a degree or diploma is recogni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Business English Course and Personality Development course offered by the appellants will be covered by exemption notification No.9/2003 ST. In this connection, reliance can be placed on the decision of the Tribunal in Anurag Soni 2017 (52 STR 18 Tribunal Delhi) wherein the tribunal observed as below: "5. Notifications No.9/2003 and 24/2004 exempts vocational training institutes from payment of Service Tax entry "commercial training or coaching". "Vocational Training Institute" means a commercial training or coaching centre which provides vocational coaching or training that impart skills to enable the trainee to seek employment 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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