TMI Blog2024 (3) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Tax (Rate) dated 28/06/2017, an approved vocational education course means, -(i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or (ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. On going through the above entry it is evident that the applicant is eligible for exemption, only when the services provided by them are in relation to either of the items listed under clause 2 (h) (i) or (ii) above. Further, as per para 1.2 of the said agreement, the Awarding Body is an entity duly recognised by NCVET which awards or proposes to award certification to trainees for an NCVET approved qualification by ensuring quality training and reliable assessments. As per para 8.1.7 of the agreement, the 'Awarding Body' shall enter into an agreement with the training bodies to offer Vocational Educa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition Programme Kerala' falls under the taxable service or not? 4. Contentions of the Applicant: 4.1. The main objectives of the applicant are to design and implement relevant interventions within the educational and training systems to enhance the social and economic relevance and employability of youth, to offer and implement solutions for skill training, Science Technology, Engineering and Mathematics (STEM) education and to build capacity of key stakeholders and institutions, to promote and facilitate implementation of apprenticeship and internships through schemes like National Employability Enhancement Mission (NEEM), National Apprenticeship Promotion Schemes (NAPS) etc and to provide skill training (foundation and vocational skills) and STEM education to the students studying and passing out from schools and colleges, youth not in education, employment or training, workers, returnees from overseas employment, women and other disadvantaged groups. 4.2. The applicant designs various relevant courses, duration, conduct of examinations and certification, and implements the courses and provides training through various accredited agencies to students across Kerala. Students p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to, or conduct of examination by, such institution; Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b) shall apply to an educational institution other than an institution providing services by way of preschool education and education up to higher secondary school or equivalent. Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of- (i) Pre-school education and education up to higher Secondary school or equivalent; or (ii) Education as a part of an approved vocational education course (v) supply of online education journals or periodicals 4.6. Now the question arises, whether the applicant falls under the category of definition of educational institution . As per para 2(y) of the said notification 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 approved vocational education course; 4.7. As per para 2(h) of the notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification number 12/2017-Central Tax (Rate) and hence, the applicant is an educational institution also under sub-clause (iii) of clause (y) of para 2 of the notification. Thus, the services provided by the applicant to its students, faculty and staff are exempt from GST as per entry at serial number 66 of Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017. 5. Comments of the Jurisdictional Officer: The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act. The jurisdictional officer has not submitted any remarks and hence it is presumed that the jurisdictional officer has no specific comments to offer. It is also construed that there are no proceedings pending or decided proceedings on the issue against the applicant under any provisions of GST Act 2017. 6. Personal Hearing: The applicant was granted an opportunity for personal hearing on 12.06.2023 through Virtual Mode. Shri. Jamsheed Adam, RCA, Chartered Accountant, represented the applicant. Another opportunity for personal hearing in view of the change in constitution of the Advance Ruling Authority was granted on 14/09/2023. The authorized representative reite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and transferred all the assets and liabilities to the newly incorporated company. 7.5. The question now arises for consideration is whether the courses conducted by the applicant to the students falls under the exemption provided under Entry number 66 of the Notification 12/2017- Central Tax (Rate) dated 28/06/2017. On examination of the submissions of the applicant, it is clear that to be eligible for the exemption provided under Entry number 66 of the Notification 12/2017- Central Tax (Rate) dated 28/06/2017, the applicant should be covered under the definition of Educational Institution as per para 2(y) of the Notification which defines an 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 approved vocational education course. The claim of the applicant that they are covered under the definition of 'Educational Institution' under para 2(y) has been examined in detail. To be qualified as an Educational Institutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional Skill Qualifications Committee (NSQC) approved qualifications. However, the exemption under clause 2 (h) (ii) of the notification is available only to the Modular Employable Skill Courses, approved by the National Council of Vocational Training (NCVT), run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. Though the applicant has been recognised by NCVET, the benefit of the said notification could not be availed by them as they have not registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. In the absence of supporting documents proving that they are registered with the Directorate General of Training, as required under the exemption notification, their claim cannot be considered to be covered under this definition. 7.7. The Hon'ble Supreme Court of India, vide Order dated 30th July, 2018, in the case of the Commissioner of Customs (Import) Vs M/s. Dilip Kumar and Company in Civil Appeal No. 3327 of 2007, held that, a situation where there is ambiguity in an exemption notification or exemption clause, in which event the benefit of such ambiguity cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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