TMI Blog2008 (8) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. S/Shri G. Shiva Dass and G. Venkatesh, the learned Advocates appeared on behalf of the appellants and Shri S.K. Choudhary, special counsel for the revenue. 3. We heard both sides. 4. Revenue proceeded against M/s. Administrative Staff College of India Hyderabad on the ground that they did not pay the service tax due on the services rendered by them namely 'Commercial Training or Coaching Service' and 'Scientific or Technical Consultancy' service. Therefore, proceedings were initiated and the learned Adjudicating Authority has given a very detailed finding to support his contention that the services rendered by the appellants indeed amount to 'Commercial Training or Coaching' and also 'Scientific and Technical Consultancy'. Consequently, he confirmed demand of Rs. 1,59,86,170 in respect of the charges received by the appellant as 'Scientific or Technical Consultancy' and 'Commercial Training or Coaching'. Further, he demanded interest under section 75. He also imposed a penalty of Rs. 150 per day under section 76 of the Finance Act and Rs. 1,59,86,170 (Rupees One Crore Fifty nine lakhs Eighty six thousand One Hundred and seventy only) under section 78. The appellants ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and emerging challenges to effectively manage regulatory, Government, commercial and non-commercial organizations. Over 75,000 participants from industry, Government and non-government organizations in India and the developing world have taken advantage of nearly 200 management development programmes offered by the organizations. The college has got 21 Honorary Patrons for Life: 1 Patron: 80 Ordinary members and seven Associate members. Many International organizations such as Asian Development Bank, British Council, British High Commission, Commonwealth Secretariat, Government of Nepal, Ford Foundation are their partners and clients. Many national organizations also are their clients. The various departments of Government of India are their clients. The aims and objectives of the college are succinctly given in the Annual Report which is furnished by the learned appellant. Annual report ending 31-3-1958 para 2 is reproduced hereinbelow: "2. The administrative Staff College aims at providing an extension of the practical training of those who already hold positions of responsibility and are considered by their employers capable of shouldering higher responsibilities. It is not an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... periences and for promotion of a better understanding between persons connected with organization and administration in the various spheres of national life; (iv) To pursue research, consultancy and training and also organize symposia, seminars and conferences in: * Good Governance * Poverty and Rural Development * Human Development * Economics * Energy, Environment and Infrastructure Development * Technology * Management And any other areas as decided by the Court of Governors, from time to time; (SGM : 24-3-2005); (v) To undertake, organize and facilitate study courses, conferences, lectures, seminars and the like to promote the aforesaid objects; (vi) To undertake and provide for the publication of journals and of research papers and books in the furtherance of the aforesaid objects; (vii) To co-operate with and co-ordinate and encourage the activities of approved institutions and organizations formed for the furtherance of like objects; (viii) To subscribe to or become a member of, or to co-operate, or amalgamate with any other association or society whose objects are similar, wholly or partly, to the objects of the Society or the establishment or prom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be invoked at all. 9. The learned special counsel, apart from reiterating the contentions in the impugned order stated that the definition of 'Commercial Training or Coaching Centre' makes it abundantly clear that once an institute or establishment satisfies the definition of 'Commercial Training or Coaching Centre' they would be liable to pay the service tax on the taxable services as defined in the Act. The use of the words 'any institute' or 'establishment' in the definition is very significant clearly reflecting the legislative intent. It covers all types of institutes or establishments. If the legislative intent was only to cover only commercial institute or establishment the definition would have read as any commercial institute or establishment which is not the case. The only requirement is such training or coaching should be on commercial consideration. In other words, so long as any fee is charged for the training imparted according to the learned special counsel the said activity would be fall within in the ambit of commercial training or coaching. He also relied on the Ministry's clarification to the Director General of the Administrative Staff College of India whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment of Scientific and Industrial Research under the Scheme on Recognition of Scientific and Industrial Research Organization in terms of the Ministry of Science Technology in the letter dated 31-3-2006 addressed to the appellants. Therefore, it was argued that the appellants had indeed rendered consultancy as in the areas of Scientific and Technical Consultancy and they would be coming under the ambit of Scientific and Technical Consultancy. He referred to the detailed reasoning given by the Adjudicating Authority and requested the Bench to uphold the order. 12. On a very careful consideration of the matter, we find that the appellants are conducting various programmes for people who are already in service in a very professional manner in all fields of administration and management has brought out in the memorandum and also the objectives which we have already stated. They are also registered as a society even though the learned special counsel and also the Commissioner have argued that the fact that they earn profit or not is not at all a consideration in the levy of service tax. We cannot ignore the significance of the word 'commercial' used therein. When a society is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in One or more disciplines of science or technology;" Section 65(105)(za) of the Act defines the taxable service as follows: "(105) 'taxable service' means any service provided or to be provided,- (za) to a client, by a scientist or a technocrat, or any science or technology institution or organization, in relation to scientific or technical consultancy." 14. It is very clear that in order to assert that an organization is providing scientific or technical consultancy, two basic ingredients have to be established. The organization must be a science or technology institution. The consultancy must relate to one or more disciplines of science or technology. By no stretch of imagination Administrative Staff College of India can be called as a 'science or technology' institution. Since their research activities are all related to social science, we are of the view that they would not come within the ambit of 'Scientific or Technical Consultancy'. So service tax cannot be leviable under the category. 15. In our view, the allegation on suppression of fact with an intent to evade service tax cannot be made because the institution is a well known institution. They had alread ..... X X X X Extracts X X X X X X X X Extracts X X X X
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