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TMI Blog2019 (4) TMI 1962X X X X Extracts X X X X X X X X Extracts X X X X ..... s of service tax department conducted inquiry into the activities of the appellant with intent to evaluate, whether any of the courses imparted by it is covered under the service tax net or not. Upon investigation into the matter, the department concluded that the services provided by the appellant would fall under taxable category of 'Commercial Training and Coaching Service', defined under Section 65 (105)(zzc) of the Finance Act, 1994. Since, the appellant was not registered with the service tax department and did not discharge the service tax liability for the period October 2005 to March 2011, the department initiated show cause proceedings against it, which culminated into the adjudication order dated 31.03.2014 (for short, referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Act, 2010 to Section 65(105)(zzc) ibid, irrespective of the constitution of the training centre or institute, the same should be considered as commercial training or coaching centre for the purpose of levy of service tax with retrospective effect from 01.07.2003. In this context, he has placed reliance on the Circular No. 334/1/2010- TRU dated 26.02.2010 issued by the CBEC. Thus, he contended that the adjudged demands confirmed by the department is in conformity with the service tax statute. 4. Heard both sides and perused the records. 5. The phrase 'Commercial Training or Coaching' has been defined in Section 65 (26) ibid, to mean any training or coaching provided by a commercial training or coaching centre. The taxable entry under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a consideration, irrespective of the presence or absence of any profit motive, then such institution or organisation would be termed as commercial entity for the purpose of payment of service tax. In the present case, it is an admitted fact on record that for imparting training/coaching, the appellant had received the consideration amount from the students. Therefore, the arguments placed by the appellant that since there is no profit motive in providing the training or coaching service and that the appellant is recognised as a public charitable trust for non-levy of service tax, are not appreciated by us in view of clear and unambiguous explanation contained in the definition clause provided in Rule 65(105)(zzc) ibid. Hence, the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereto cannot be invoked for such recovery inasmuch as there was no element of fraud, collusion, wilful misstatement or suppression of facts on the part of the appellant, with the intent to defraud the Government revenue. We find that there were divergent views by the co-ordinate Benches of the Tribunal with regard to levy of service tax under Commercial Training or Coaching Service. Considering the debatable issue of subject levy, the Hon'ble Bombay High Court in the case of Pr. Commr. of Service Tax Vs. Shree Chanakya Education Society, reported in - 2018 (362) E.L.T. 741 (Bom.) have held that since the assessee has expressed bona fide belief that service rendered by it was not chargeable for service tax, then in such case, demand should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmation and recovery of service tax demand under the extended period of limitation. Since, non-payment of service tax by the appellant was not attributable to the reason of fraud, collusion, wilful mis-statement etc., the proceedings should have been initiated within the normal period of one year from the relevant date. Thus, the show cause notice issued in this case beyond the normal period is clearly barred by limitation of time. 9. On perusal of the case records, we find that for the period May 2010 to March 2011, the appellant had collected the service tax from the service recipients, but did not deposit such amount into the Central Government account. The assessee is not empowered under the service tax statute to retain the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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