TaxTMI 
TaxTMI 
2025 (1) TMI 1323
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....o deliver academic programs; the appellants installed hardware/ software in the learning centers, provided infrastructure and technology and helped in sales and marketing; they collected the fees from the students and shared the same with the educational institutions for the courses like EPDSS (Executive Program for Development of Strategic Skills), PLAM (Program on Leading and Managing), EPYP (Executive Program for Young Professionals), EPGBM (Executive Program on Global Business Management), EPBA (Executive Program in International Business) etc. 2. During the audit of the records of the appellant, Department observed that the appellants, during the period 2005 to June 2012, have booked it in profit and loss account under the Head "Tuition Fee and Other Fees" and have not paid service tax; two different Show Cause Notices, covering the period 2005-06 to 2011-12 and 2011-12 to 2012-13 (till June 2012), were issued to the appellants demanding service tax along with interest and penalties; the proposals in the Show Cause Notice have been confirmed vide Orders-in-Original dated 10.12.2013 and 20.01.2017; the appellants assail the orders vide Appeal Nos. ST/51516/2014 and ST/60390/20....
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.... definition excludes the center which issues any certificate or diploma or degree or any educational qualification recognized by law; the appellant is only providing support services to the institutions which provide educational service. He submits that CBEC vide Circular No.59/2003 dated 20.06.2003 clarified that if institutes or establishments recognized by law, in addition to recognized degree courses provide training for competitive examination, such services rendered would be outside the scope of service tax. He relies on the following cases: Asian School of Media Studies vs. Commr. of Central Goods & Service Tax, Noida (2022) 1 Centax 272 (Tri.-All) / 2023 (68) G.S.T.L. 161 (Tri. - All.) Asian School of Media Studies vs. Pr. Commissioner of CGST, NOIDA 2024 (2) TMI 616-CESTAT Allahabad Malappuram Distt. Parallel College Association v. Union of India - 2006 (2) S.T.R. 321 (Ker.) JMC Educational Charitable Trust v. Commissioner 2011 (21) S.T.R. 421 (Tri.-Chennai) Commissioner of Central Excise, Tiruchirapalli v. Trichy Institute of Management Studies (P) Ltd 2011 (22) S.T.R. 533 (Tri. Chennai) maintained at Madras High Court at 2016 (44) S.T.R. J162 (Mad.)] Com....
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....f and therefore, there is no case for extended period; as such, demand of interest and penalty is also not sustainable. 7. Shri Siddharth Jaiswal, learned Authorized Representative for the Department reiterates the findings of the impugned order as far as the appellant's appeals are concerned and submits that from the agreements, it is clear that the appellants were integral part of the set up providing Commercial Coaching or Training for the courses conducted; it is the appellant who makes all the arrangements regarding admissions of the students, enrolls them, maintain suitable place for effective delivery of the programs and collects the fees which is shared; the appellants are not imparting skill or knowledge or lessons for sports; the activity of the appellant falls under the category of Commercial Training or Coaching rather than Business Auxiliary Service; the appellant has recorded their income in their "Profit and Loss" Account under Tuition and other Fee; the facts came to be known by the Department only on conduct of audit; therefore, extended period was rightly invoked. 8. Learned Authorized Representative submits, as far as Departmental appeal is concerned, that the ....
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.... These classrooms/learning centers shall be as per specifications provided to the Business Partner/Franchisees by HECL. The conduct of the HECL Franchisee/Business Partner, in the course of administering the Programs delivered by XLRI, shall be governed by the agreement between HECL and the Franchisee/Business Partner. The agreement shall contain clauses, which protect XLRI's interests. The copy of the same will be furnished to XLRI on request. It shall be HECL's endeavor to first fill up solely owned classrooms with students. In the event that the demand for the program is higher than what can be accommodated at these classrooms, HECL would accommodate the excess Registered Participants at the Franchisee/Business Partner classrooms/learning centers referred to in clauses 12.11 & 12.13 above. The convivence of Registered Participants would also be a key factor in deciding which classrooms she/he takes up 10. Clause 5 of Attachment D says as follows: ST/51516/10 2014 & 02 others XLRI shall have the right to conduct an inspection of the studio, the classrooms (owned by HECL or franchised) and material provided by HECL to Registered Program Participants for conduct of XL....
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.... Global Education interactive learning platform. The heart of the platform is a powerful user interface that enables large number of geographically distributed Students to have a highly interactive 'one to one'/ "one to many" exchange with a central faculty. The system incorporates live broadcast video, two-way audio and data interactivity to enable the students to watch and interact with the faculty live on their PC's. The classrooms shall have a facility of CCTV monitoring and record the proceedings locally for various purposes including attendance, examination conducts. Certificate- To be provided by IIMC. The certificate should be a qualifying certificate. On successful validation of the Registered Participants performance, IIMC will issue the appropriate certification on the Registered Participant. The responsibility of issuance & delivery of the certificates to Students shall be UMC responsibility. 12. On going through the Clauses/ Articles of different Agreements, it is clear that the appellants are providing and maintaining infrastructure like classrooms, uninterrupted communication and are marketing the programs; they provide and maintain the facilities un....
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....d there is a contradiction in the findings of the learned Commissioner. In view of the terms of the Agreement as discussed above and in view of the findings of the learned Commissioner, the appellants are providing support services to the institutions who are engaged in providing education service. This being so, it cannot be held that the appellants have a joint venture with the institutions and are providing the services of a Commercial Training and Coaching Center. Understandably, the institutions referred are not preparing the students for any examination conducted by any other university or authority. The institutions design their own courses and use their own pedagogy and conduct the courses. The role of the appellants is limited to providing the necessary infrastructure and to help the institutions in marketing the courses. We find that learned Commissioner comes to the conclusion that the two parties i.e. the appellants and the institutions have their respective tasks and obligation identified and demarcated and accordingly, the education is provided by them jointly to the students. It is surprising that having come to the conclusion that the appellants are jointly providin....
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....endered by the appellants can at best be termed as "Business Support Services" rendered to the institutions. The activity undertaken by these institutions having no commercial element, such services provided by the appellants cannot be held to be taxable during the relevant period. 16. Coming to the Revenue's appeal, we find that Revenue filed this appeal on the grounds that the activity undertaken by the appellants falls under the category of Commercial Training and Coaching Service and on the grounds that Tribunal in the case of Great Lakes Institute of Management (supra) that for the purpose of determining the scope of the taxable service of Commercial Training and Coaching, there is no need to take into account the scope and nature of education provided and the fact that institution functions without any profit motive. We find that learned Commissioner (Appeals) finds that the appellants have deposited duty and have not categorized any service to which the tax can be attributed; that neither the adjudicating authority nor the appellants brought on record as to how the activities undertaken by the appellants fall under the services taxable under the category "Commercial Trainin....