TMI Blog2018 (8) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... arifies that the same is not applicable to the appellants. Vocational training institute as per the explanation of said Notification is held to mean an 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. There is nothing on record to prove said affiliation - demand confirmed. Extended period of limitation - penalty - Held that:- The appellants are admittedly imparting education against heavy considerations. It is apparent on record that they have tried to avoid their tax liability under different pleas i.e. on the ground of them being a charitable trust, another ground of them being a deemed university and of them being imparting education under the aegis of the bodies constituted under the force of law - the appellants being an education imparting institute cannot be presumed to have acquired a wrong interpretation of the legal provisions or notifications or circular still taking the benefit thereof is definitely a deliberate non-disclosure of correct fact and as such suppression of fact - extended period and penalty rightly in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... September 2010 to March 2011 ₹ 1,94,94,700/- ₹ 1,76,74,252/- Total Rs.15,44,58,783/- ₹ 11,45,24,226/- Resultantly, the present Appeal. 3. Heard arguments of both the parties. It is submitted by the Ld. Counsel for the appellant, while challenging the impugned order, that the appellant is rendering education and teaching by them is excluded from the ambit of being called as commercial training or coaching service as is alleged for one simple reason that they are teaching under the aegis of the recognised universities. The demand of ₹ 11,45,24,226/- has been confirmed in total. It has to be divided in four parts i.e. for giving PG diplomas, i.e. PGDM/PGP/MBA, B.Sc. in Management/ BBA, M.Sc. in International Business and Diploma in Design. Three of these courses are denied to be affiliated by the Department and the fourth one i.e. diploma in design is denied to be vocational in nature. It is submitted that these courses are covered by the exclusion clause of the definition of commercial training or coaching centre as given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the Counsels, we are of the considered opinion as follows:- It is an admitted fact that the appellants are imparting education in following courses against consideration: (i) B.Sc. Management/ BBA (ii) M.Sc. International Business (iii) PGDM/PGP/MBA (iv) Diploma in design The point of consideration is as to whether imparting of these courses by the appellants constitute rendering a service of commercial training or coaching centre. These services were brought under service tax net under the Finance Act, 2003 w.e.f. 01.07.2003. The services shall be taxed if it is provided by a commercial training or coaching centre. For the purpose, it is important to know the following definitions: (1) Commercial training or coaching which means any training or coaching provided by a commercial training or coaching centre. [Sector 65(26)], Finance Act, 1994 (the Act in short). (2) Section 65(27) of the Act defines commercial training or coaching centre to mean any institute or establishment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided by any commercial coaching or training centre from the whole of the service tax leviable under Section 66 of the Finance Act, 1994. This Notification came into force on the 1st day of May, 2011. Thus, two identical courses may be treated differently merely because one of the institute also conducts another course that is recognized by law. This anomaly is proposed to be corrected by subjecting all such unrecognized education to tax. Conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications recognized by law would be covered under exemption. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification. The Board through Circular No. 164/15/2012-ST dated 28.08.2012 (appended as Annexure I) has clarified that the words recognized by an law will include such courses as are approved or recognized by any entity established under a central or state law including delegated legislation, for the purpose of granting recognition to any education course including a VEC. 7. Though the contention of the appellant is that they are recognized universi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Apprentices Act, 1961. There is nothing on record to prove said affiliation. The exemption has rightly been declined by the adjudicating authority below. The demand to this vocational course is also therefore confirmed. 10. Now, coming to the entitlement of the Department for invoking extended period, it is held as follows:- Department also has preferred an Appeal challenging the impugned order for doing away the penalties while denying the benefit of invoking extended period of limitation to the Department on the ground that the appellant s case is not at all a case of bonafide doubt. The appellant on the other hand has justified the said findings in the impugned order. We are of the opinion that the appellants are admittedly imparting education against heavy considerations. It is apparent on record that they have tried to avoid their tax liability under different pleas i.e. on the ground of them being a charitable trust, another ground of them being a deemed university and of them being imparting education under the aegis of the bodies constituted under the force of law. As already discussed above, none of the ground is opined favouring the appellant s case. The notificat ..... 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