TMI Blog2018 (4) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... law that if the plain meaning of the exemption notification covers the assessee, the benefit should be allowed - even if courses can be artificially split as intermediate and entrance coaching, the essential character flows from the intermediate training and hence the appellants are eligible for the exemption under N/N. 33/2011-ST with effect from 01.05.2011. For the period 2012-2013 - Held that: - the primary activity of the Appellant is to impart intermediate education. The Appellants are imparting training for various national entrance tests which are integrated to their intermediate courses as prescribed by the Board. Therefore, the predominant nature of the service will be imparting formal education which stands excluded from service tax net - the activity of the Appellants are not taxable for the impugned period also. For the period 2013-2014 - Held that: - during the period from 01.07.2012 to 31.03.2'013 as regards imparting skill, knowledge, education or development of course content or any other knowledge, all stood exempt from the payment of service tax by a combined reading of Section 66B, 66D and N/N. 25/2012-S.T., dated 20.6.2012 - demand not sustainable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on various subjects as per the guidelines of Intermediate Board. Appellants Society in certain junior colleges also provide residential schooling. Various courses are offered by the appellants society to their students towards intermediate in the Junior Colleges are (i) Maths/Physics/Chemistry (Regular Intermediate), (ii) Intermediate+IIT-JEE (along with AIEEE+BITSAT) (iii) Intermediate+EAMCET+AIEEE+BITSAT (iv) Biology / Physics / Chemistry (Regular intermediate) (iv) Intermediate + EAMCET (v) Intermediate+EAMCET+AIIMS+JIPMET etc. 5. For the courses conducted as indicated herein had a fee structure which was informed to the students in advance. For the period in question in these appeals i.e. 2011 to 2015, demands were raised on various amounts collected by appellants from the students which is tabulated herein under:- Description of the Fee Collected 2011- 2012 2012- 2013 2013- 2014 2014-2015 Tuition Fee Yes Yes Yes Yes Teaching Fee Yes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N/A Admission Fee N/A N/A Yes N/A Registration Fee N/A N/A Yes N/A Application Fee A/c N/A N/A Yes Yes DRDA Students N/A N/A Yes Yes Fee Collection A/c N/A N/A Yes Yes Fee refund N/A N/A Yes Yes Cum tax Yes Service Tax demanded as Corrigendum 59,34,53,240 58,06,53,812 Service Tax confirmed as per OIOs 33,97,36,617 43,03,87,497 63,21,37,175 62,99,28,956 6. Show cause notices were issued for demanding of service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... another portion subjected to service tax is the matter settled by Hon ble Apex Court in the case of CCE v. Larsen Toubro Ltd. 2015 (39) STR 913 (S.C.). It is his further submission that for the period 2012-13 the entire service tax regime shifted to negative list i.e. all services were taxable other than those mentioned in the negative list; he reads of the Section 66D of the Finance Act, 1994 and submits that wherever education is imparted a tax is a part of curriculum for obtaining a qualification recognized by any law for the time being in force and Mega Notification No. 25/2012-S.T. exempted certain taxable services from whole of the service tax leviable thereon and appellant is covered in such exemption. It is his further submission that during the period 2013-14, notification No. 3/2013-ST substituted the words provided to or by by words provided to , still the courses conducted by the appellants society is for education and development of knowledge and exemption as per combined reading of Section 66B and 66D and Notification No. 25/2012 and hence the exemption is available to appellant s society. For the period 2014-15, he would submit that by Mega Exemption Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial coaching and training services as the fees to be charged for imparting knowledge to the Intermediate Board Examination is regulated and appellant society has charged phenomenal amount. It is his submission that appellant s society is not registered with any other authorities who could have gone into in detail and arrive at a conclusion as to whether the fees charged by the appellant s society is correct or otherwise and allegation of the department that they have charged excess fee will get covered under the category of Coaching has not been effectively controverted by the appellant. It is his further submission that the education which is imparted by the appellants society is not only for Intermediate Board Examination but in addition to that training to students is provide to back various entrance tests and no information was forthcoming from the appellants about the details of fees charged and collected and segregation of the amounts to the education imparted to the Intermediate Board Examination and other entrance tests examination. It is his submission that the adjudicating authority was correct in confirming the demand raised. 9. We have considered the submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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. 14. The amendment of definition was simultaneously accompanied by exemption Notification No. 33/2011-ST dated 25.4.2011 (effective 1.5.2011) which reads as under: In exercise of the powers conferred by sub-section (I) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government on being satisfied that it is necessary in the public interest so to do, hereby exempt,- (i) Any pre-school coaching and training; (ii) Any coaching or training leading to grant of a certificate or diploma or degree or any educational qualification which is recognized by any law for the time being in force; When provided by any commercial coaching or training centre from the whole of the service tax leviable thereon under Section 66 of te Finance Act, 1994. 2. This notification shall come into force on the 1st day of May, 2011. 15. The effect of the amendment was that while even an institution / establishment providing formal education came to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment not to subject formal education to service tax. 21. Further, the appellants also derive strength to their contentions in this regard from the principles of classification of taxable services. In terms of Section 65A(2) of the Finance Act, 1994, where an activity appears to fall under two different categories, such activity shall be classified under the service which gives the activity its essential character. The core activity of the appellants is providing formal education. 22. On reading of various materials on record, we find that even if courses can be artificially split as intermediate and entrance coaching, the essential character flows from the intermediate training and hence the appellants are eligible for the exemption under Notification No. 33/2011-ST with effect from 01.05.2011. FOR THE PERIOD 2012-2013 23. With effect from 01.07.2012, the entire service tax regime underwent substantial changes. A general definition of 'service' was inserted by Section 65B (44) of the Act, instead of defining individual taxable services. 24. Section 66B of the Finance Act, was the charging section in the Finance Act. Therefore, for an activity to be taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case, the primary activity of the Appellant is to impart intermediate education. The Appellants are imparting training for various national entrance tests which are integrated to their intermediate courses as prescribed by the Board. Therefore, the predominant nature of the service will be imparting formal education which stands excluded from service tax net. 32. Therefore, the activity of the Appellants are not taxable for the impugned period also. FOR THE PERIOD 2013-2014 33. During the said period, vide Notification No. 3/2013-ST Dated 1.3.2013 (w.e.f 01:04.2013), in entry 9 of the Notification No. 25/2'012, for the words provided to or by , the words provided to was substituted. 34. However, during the period from 01.07.2012 to 31.03.2'013 as regards imparting skill, knowledge, education or development of course content or any other knowledge, all stood exempt from the payment of service tax by a combined reading of Section 66B, 66D and Notification No.25/2012-S.T., dated 20.6.2012. 35. Therefore, the submissions made for the period 2012-2013 will squarely be applicable for this period also. FOR THE PERIOD 2014-2015 36. Further ..... X X X X Extracts X X X X X X X X Extracts X X X X
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