9911796707
TMI Blog2021 (11) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... Aug.'13 2,95,97,370/- C. No. V(15)Adj./ST/ Noida/ASM/ 69/14/1311-13 dated 20.03.2015 Sept.'13 to Dec.'14 1,19,05,157/- C. No. V(30)Tech/ SCN/Asian School/D-I/GST/N/135/2017/ 1714-15 dated 06.10.2017 Jan.'15 to Mar'15 34,28,606/- 2. Asian Business School (ABS) C. No. 60 INT/ DGCEI /HQ/2013 Dated 30-09-2014 59,42,344/- 3. Asian School of Communication (ASMS) SVLDRS Scheme applied and dispute settled As above Not in appeal 32,96,730/- 2. Brief facts of the case are that the appellants Asian School of Media Studies (ASMS in short) and Asian School of Communication (ASC in short) and also Asian Business School (ABS in short) all under the same management located at FC 14/15, Sector 16-A, Film City, Noida (U.P.) (premises known as Marwah Studios) are conducting professional/ vocational training courses and providing certificates to the students, on the basis of which the students are getting jobs or are trained to work as an entrepreneur / self-employed. 3. On the basis of intelligence, it appeared to Revenue that the appellants are evading payment of service tax as they are conducting training courses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax.Thus, they have not got themselves registered with the Service Tax Department. That the various training courses provided by the group institutions focussed on different types of vocational training namely (i) short duration programme in production, direction (ii) TV Journalism; (iii) Camera & Lighting Techniques; (iv) Video editing and sound recording; (v) Advertisement & event management; (vi) Acting & presentation (including dance, singing, martial arts etc.) and (vii) Graphics & Animations etc. These courses may be categorised as vocational training as well as recreational training, as defined in Notification No. 24/2004-ST dated 10.09.2004 read with Notification No. 3/2010-ST. By virtue of the notification, the courses offered by their educational institutes, do not fall under the ambit of service tax. The training and courses conducted by their institutes, impart skills to the students to seek employment after completing of the course including self employment. Evidently, under these notifications, the training courses provided by them fall under institutes and are exempted from levy of service tax. 6. Statement of Shri Sandeep Marwah, Chairman of the appellant was reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edia Studies (ASMS) situated at Marwah Studio Complex, Noida are not included in the list of Universities as maintained by the UGC and cannot award degrees. ii) Mewar University, Gangrar, Chittorgarh (Rajasthan) was established by an Act of the State Legislature of Rajasthan as a Private University and is empowered to award degrees as specified by the UGC under Section 22 of the UGC Act, 1956 at its main campus in regular mode with the approval of statutory bodies/ councils, wherever required. iii) Mewar University, Gangrar, Chittorgarh (Rajasthan) is not authorised to open study entre/ off-campus centre beyond the territorial jurisdiction of the State. The university cannot open off-campus center(s)/study centre(s) even within the state as per provisions contained in the UGC (establishment of and Maintenance of Standards in Private Universities) Regulations, 2003. iv) UGC has not granted any approval to Mewar University to run courses in collaboration with Asian Academy of Film & TV (AAFT), Asian School of Communication (ASC) and Asian School of Media Studies (ASMS) situated at Marwah Studio Complex, Noida. 8. Enquiries was also made with Mewar University, Chittorgarh who v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d acting, etc., for which agreements (MoU) were entered into between Mewar University and appellants. In her statement Dr. Alka Agrawal, Director of Board of Studies of Mewar University, stated that they had a tie up with the appellants for training of students of Mewar University in media and film courses. 12. Further, by letter dated 03.02.2014 Shri Sandeep Marwah, President Chairman of the appellants further submitted as under:- (A) that the various educational institutes being run in the campus premises, popularly known as Marwah Studios, at address at FC-14/15, Sector -16A, Film City, Noida focus on different types of training and courses to students which may be summarised as under-Short duration programs in Production, Direction, TV journalism, Camera & Lighting Techniques, Video editing and Sound recording, Advertisement & Event management, Acting & Presentation (including, dance, singing, martial arts etc.) and Graphics & Animation etc. (B) that these courses may be categorised as 'vocational training' as well as 'recreational training' as defined in Notification No. 24/2004-ST dated 10.09.2004 and also Notification No. 03/2010-ST dated 27.02.2010, thereby these cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Film & Television' is registered with Income Tax Department u/s 12AA' of the Income Tax Act, 1961. (C) That the Charitable educational institute namely 'Asian Society of Film & Television' to buy peace of mind', had preferred to go with 'The Service tax Voluntary Compliance Encouragement Scheme (VCES), which came into effect from 10.05.2013 and had deposited the Service Tax. (D) That vide Notification No. 12/2012-ST dated 17.03.2012, 'Services by an entity registered under Section 12AA of the Income Tax Act, 1961 by way of charitable activities', has been exempted from service tax. Further, 'Asian Society of Film & Television' is already registered u/s 12AA of the Income Tax Act, hence exemption from service tax is applicable to it and also applicable to institutions running under it namely, M/s Asian School of Media Studies and M/s Asian School of Communication." 14. It further appeared to Revenue that, it is the appellant's Institutions which give the certificate/ degree after completion of the course. It was further alleged that the courses conducted by the appellants cannot be termed as vocational courses as these courses are professional courses, attracting high fees. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 includes coaching or tutorial classes [****].... omitted w.e.f. 1.5.2011 by section 74 of the Finance Act, 2011." 18. Further, Notification No. 33/2011-ST dated 25.04.2011, effective from 01.05.2011, exempts any coaching or training, leading to grant of a certificate or diploma or degree or any educational qualification, which is recognised by any law, for the time being in force. 19. It further appeared to Revenue that after introduction of the negative list (Section 66D) w.e.f. 01.07.2012, only education as part of a curriculum for obtaining a qualification recognised by any law, for the time being in force,is exempt from service tax. Thus, w.e.f. 01.07.2012 or from 01.05.2011, the activities of appellants during the period under dispute, being not recognised by any law, are chargeable to service tax. 20. In order to quantify the service tax payable by the appellant, the details of amounts collected towards course fees and other receipt was called for, which were submitted by the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, as the students were admitted in MU, and under the MoU, have studied as per the University curriculum in the institutes / schools of the appellant, and thereafter the exams have been conducted by MU and after evaluation the students have been awardedBachelor degree/certificate by the University. Similarly, the appellant have demonstrated with respect to courses conducted in collaboration with PTU. (emphasis supplied). 23.1 Learned Counsel for the appellants have also demonstrated the proof of employment of several students who have studied and /or have attended the various courses conducted by the appellants in collaboration with MU/ PTU, etc. It is evident that the appellants are imparting education and vocational training as per prescribed curriculum of the respective Universities, and after completion of the course, the students appear for the exams conducted by the University and on such qualification, have been granted the Degree by the University. Accordingly, the activity of the appellant under dispute is exempt. Reliance is placed on the rulings in the case of (i) Gateway of Entrepreneurship & Management Studies Trust vs. Commissioner - 2018 (3) TMI 503(ii)JMC Educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter, the relevant para of the said circular reads as under: "Vocational coaching and training services provided by typing and shorthand institutes, TV/ vehicle repair training institutes, tailoring institutes, industrial training institutes, foreign language institutes, computer training centres, hobby classes, institutes teaching martial arts, painting, dancing etc. would not be chargeable to service tax." It is also relevant that Section 65(27) of the Act defines 'Commercial Training or Coaching Centre' as under: Till 30.04.2011 " 'Commercial training or coaching centre' means 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 includes coaching or tutorial classes but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by law for the time being in force." (emphasis supplied). From 01.05.2011 to 30.06.2012 During this period the definition of the services in ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; "; Vide the same notification, the definition of 'educational institution' as clause-(oa) in para 2 of the Notification No. 25/2012-ST as under: (oa) "educational institution" means an institution providing services by way of- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iv) education as a part of an approved vocational education course; (C) The definition of 'educational institution' as inserted above was substituted, vide Notification No. 9/2016-ST, dated 01.03.2016 w.e.f. 14.05.2016, with: (oa) "educational institution" means an institution providing services by way of (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellants are providing education/ vocational training, but the conclusion that such courses shall not qualify as vocational course due to the quantum of fee charged (high). We further find that the learned Commissioner has rejected the benefit of exemption and/or exclusion provided in the statute from tax, by observing that courses provided by the appellants are professional and technical in nature as well as glamorous. We find that such interpretation is wholly misconceived. The Adjudicating Authority has failed to appreciate that there is no such bar (with respect to the quantum of fee), in the statute for grant of exemption. Further, the list of services (enumerated in Circular No. 59/8/2003) being in the nature of vocational courses is by way of example only. Further, the list ends with the word etcetera/etc., the conscious use of the word 'etc.' indicates the wide scope of the exemption notification. Such observation of the learned Commissioner are by way of conjecture and surmises, have no legal sanctity. 24.7 Thus, we find that the 'Commercial training/ education/ coaching' provided by the appellants imparts skills to the students/ trainees to enable them to seek employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Counsel has demonstrated that there was a proper laid down curriculum for each of the programme conducted by the appellant, in collaboration by the respective University. Thus, we find that the appellants have conducted education or vocational training, as part of curriculum for obtaining qualification, recognised by law for the time being in force. Further, we find that the observation of the learned Commissioner that the recognition granted by the PTU to the appellant with respect to the Delhi address is also erroneous, as the Delhi address is the city office or the Head Office, whereas the campus is located at Noida. Further, the learned Counsel for the appellant has demonstrated by annexing a letter from PTU, recognising change of address to Noida Campus. 25.4 We further find that learned Commissioner have admitted in the show cause notice itself, that MU is sending their students for training/ education with respect to various courses like Mass Communication, acting, etc. to the campus of the appellants. We further find that there is no such requirement as to affiliation from a University. The only requirement is, that the course being taught should be part of a curriculum, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the courses conducted by the appellants, the students/ trainees have either received employment and/or are competent to be self employed. 27. We further find that a Coordinate Bench of this Tribunal (Chennai) in the case of Gateway of Entrepreneurship and Management Studies Trust vs. CCE (supra), under the facts that Gateway was providing coaching and training services to the students of Allagappa University. The University was collecting fee from the students for such coaching. The Department was of the view that the said activities was falling under the 'Commercial Training or Coaching Service'. On appeal by the assessee, this Tribunal appreciating the fact that the assessee is actually an AuthorisedEducation Centre in collaboration with Allagappa University, and the fee collected from the students are remitted to the University and the examination are conducted by the University. Thereafter, the Degree/ Diploma certificate was issued by the University and therefore the activity rendered would not fall within the definition of 'Commercial Training or Coaching Services'. The Tribunal also noticed that Gateway are collecting service charges apart from fees which according to R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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