TMI Blog2008 (10) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... - This appeal has been filed against the Order-in-Appeal No. 16/2006 (H-II) S.T. dated 15-9-2006 passed by the Commissioner of Customs and Central Excise (Appeals-II) Hyderabad. 2. Shri G. Shiva Dass, the learned Advocate appeared on behalf of the appellants and Shri S.K. Choudhary, the learned special counsel, for the Revenue. 3. We heard both sides. 4. The appellant-Centre for Development of Advanced Computing referred to as C-DAC is a society registered under the provisions of Societies of Registration Act 1860. They are also registered under the Public Trust Act, 1950 and are under the administrative control of the Department of Information and Technology, Ministry of Communication and Information Technology. The appellant is exempt from payment of Income-tax under Section 35(i)(ii) of Income-tax and also under Section 12(A)(a) of Income Tax 1961 being a charitable trust. The appellant is also recognized as a Scientific Society under the Department of Information Technology, Ministry of Communication and Information Technology and Scientific and Industrial Research Organization by the Ministry of Science and Technology. It is urged that the appellant is engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are not providing any commercial training or coaching service. Our attention was directed to the definitions of 'Commercial Training or Coaching Centre' in Section 65(26) and (27) and also the Board's Circular dated 20-6-2003 in which the scope of levying of service tax under the commercial training or coaching was explained. It was stated that in the light of the circular indicated the 'commercial training or coaching service' has a very limited coverage and covers only the services provided by the coaching institutes and tutorials engaged in preparing students for appearing in various examinations. An institution providing high level of training and coaching and training was never intended to be covered under the taxable service of 'commercial training and coaching.' It was stated that the Board's circular makes it clear that only centres which are training and coaching students for various examinations and which receive consideration are coming under the category. An institution which is providing very advanced training in a field cannot be called as a 'commercial coaching and training centre.' Moreover, much emphasis was laid on the profit motive. As the appellant is a socie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cricket in India v. CCE - 2007 (7) S.T.R. 384 (Tri. Mumbai) = 2007-TIOL-CESTAT-Mum. (b) Institute of Banking Personnel Selection v. Commissioner of Service Tax, Mumbai - 2007 (8) S.T.R. 579 (Tri.-Mum.) = 2007-TIOL-1393-CESTAT-MUM. (c) Commissioner of Central Excise, Siliguri v. M/s. Mahabir International - 2008 (9) S.T.R. 162 (Tri.-Kolkata) = 2007-TIOL-1663-CESTAT-KOL. (d) M/s. Great Lakes Institute of Management Ltd. v. CST, Chennai 2008 (10) S.T.R. 202 (Tri.-Chennai) = 2008-TIOL-134-CESTAT-MAD. (e) CCE, Mangalore v. Employ Me - 2006 (4) S.T.R. 303 (Tri.-Bang.) = 2008 (12) VST 428 (CESTAT-Bang.). (f) CC, Madras v. Murugappa Chettiar Research Centre - 1998 (100) E.L.T. 439. 9. It was urged that the education is a broad term and coaching and training have a very narrow meaning. Education may include coaching and training but not vice versa. Further, our attention was invited to the Memorandum of Association to Clause 3 which is reproduced herein below: 3.1.1 To undertake in a selective, time bound and mission oriented basis, research, Design and Development of the state of the art advanced computing systems so as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umed without admitting that the appellants are liable to pay service tax under these two categories it has to be appreciated that there was reasonable cause for the failure of the appellants to pay the service tax. In support of the above, the appellants rely on the decision of the Supreme Court in the case of Hindustan Steel Ltd. v. The State of Orissa reported in 1978 (2) E.L.T. J159 (S.C.) = AIR 1970 (SC) 253. The above decision of the Apex Court was followed by the Tribunal in the case of Kellner Pharmaceuticals Ltd. v. CCE reported in 1985 (20) E.L.T. 80. 11. The learned special counsel reiterated the point that so long as the institution imparts training and receives consideration it should be classified within the ambit of commercial training or coaching centre. Profit motive is immaterial. Further, he reiterated the contentions in the impugned order. 12. On a very careful consideration of the issue, we find that the primary object of the appellant is doing research in advanced computing. They are also engaged in doing research on super computers and very advanced computation. Therefore, while this sort of institute which is mainly doing research activity in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me element of repetition or drill. No doubt, they are also intellectual activities, but the level of intellectual activity in a commercial training or coaching is not that high. Because, in those cases the intentions are very clear. The student wants to pass some examination in the shortest possible time. He has to be trained to do an examination very well. That's why, there is mushrooming growth of various private institutions imparting coaching in order to pass some entrance exam. Whereas in an institution like C-DAC the intellectual level of imparting training is of very high order, even the minimum qualification is either BE or B.Tech where the level of intellectual activity is very high. Repetitive activity is not encouraged. In those cases, a very high level of originality or original thinking and creativity are emphasized. We don't think that they are imparting courses which emphasize only rote learning. So, we have to distinguish between different types of institutions. An institution doing advanced research in computing and even imparting certain advanced courses cannot be equated with a commercial training or coaching centre. We want to emphasize that in respect of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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