TMI Blog2019 (2) TMI 1568X X X X Extracts X X X X X X X X Extracts X X X X ..... re to produce animation and animation films. This is similar to CAD software or TALLY software used by professionals in their work. In our view, the test to decide whether or not the training in question is a training related to computer hardware or software is what the trainee does at the end of his training - In this case, the trainee will not become specialist in computer software or hardware and he will also not be equipped to develop new computer animation software. All he is trained is in using the software to develop animations. Therefore, the appellant is clearly not covered by the mischief of the proviso and the explanation to the notification 24/2004-ST. The appellant is not liable to pay service tax on the computer animation s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious courses in the field of animation like 2D Animation, Extreme 3D, Extreme Compositing (SHAKE), Advance Training (FCP) etc. On gathering intelligence about the activities carried out by the appellant they were asked by the department to register themselves with the service tax department in 2006. The appellant contested this direction stating that they are exempted from the payment of service tax under notification 24/2004-ST dated 10.9.2004 since they are a vocational training institute. They further informed the department by letter dated 21.4.2007 that they are animation training institute and their students become animation professionals and not computer software or hardware professionals and submitted that details of course fees co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o them. They relied on the following case laws: i. Sunwin Technosolutions Pvt Ltd [2007 (7) STR 700] ii. Doon Institute of Information Technology Pvt Ltd [2008 (12) STR 459] as affirmed by the Hon ble High Court in 2014 (35) STR 711] iii. Uttara Training, Software Allied Services [2009 (14) STR 218] iv. Centre for Research Industrial Staff Performance [2017 (49) STR 560] b. Animation training provided by them is not training or coaching related to computer software or hardware but it only uses computer software for developing animation. Several professions use computers including advanced computer software in their work but that by itself does not make their work computer hardware or software related work. For instance th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08-09 invoking extended period of limitation. In November, 2006 itself the department was aware of their activities and they asked them to register themselves with the service tax department and the appellant clarified that they are engaged in imparting vocational training in animation using computers and the computers are only a tool for imparting training. Therefore, their activities were within the knowledge of the department. Learned counsel would submit that only period from April, 2008 to March, 2009 is within the normal period of limitation and rest of the demand is time barred. As the issue involves an interpretation of law, more precisely, interpretation of provisions of Notification No. 24/2004-ST, invoking extended period of limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this notification as a commercial training or coaching centre which provides vocational training or coaching that imparts skills to enable the trainee to seek employment or undertake self employment directly after such training or coaching. It is not in dispute that appellant provides coaching in animation and that the course is intended to make the trainees employable so that they can either find employment or undertake self employment. This notification was subsequently amended vide notification 19/2005-ST dated 7.6.2005 by inserting a proviso as follows: Provided that nothing contained in this notification shall apply to the taxable services provided in relation to commercial training or coaching by a computer training insti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax on the computer animation software training which they have provided as they are entitled to the benefit of exemption notification 24/2004 as amended vide notification 19/2005-ST dated 7.6.2005. Insofar as the video tape production service is concerned, the appellant produced animation movie and sold it for a consideration. Video tape production services as per Sec. 65(119) of the Finance Act, 1994 is any professional videography or a commercial concern engaged in the business of rendering service related to video production. Video tape production means the process of recording any programme, event or function on a magnetic tape or on any other media or device and includes editing thereof in any manner. The animation film produced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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