Commercial training or coaching

CESTAT, CHENNAI BENCH

JMC Educational & Charitable Trust

v.

Commissioner of Central Excise (ST), Trichy

P.G. CHACKO, JUDICIAL MEMBER

STAY ORDER NO. 970 OF 2007

APPLICATION NO. S/PD/97 OF 2007

APPEAL NO. S/140 OF 2007

September 21, 2007

Section 65 of the Finance Act, 1994 - Commercial training or coaching - Period from July 2003 to March, 2005 - Assessee-trust conducted coaching classes for students of a University - Service tax was demanded from it on total amount of fees collected from students who attended coaching programme under category of ‘Commercial training or coaching centre’ for period July, 2003 to March, 2005 - Whether since assessee had not made out prima facie case against demand of tax, it was to be directed to pre-deposit service tax amount - Held, yes [Para and 2]

FACTS

The assessee-trust was conducting coaching classes for students of a University. It was not affiliated to the said university. The lower authorities demanded service tax from assessee on the total amount of fees collected from the students who attended the coaching programme under the category of ‘Commercial training and coaching center’ and also imposed upon it.

On application the assessee relying upon decision in Noble Institute (Education) (P.) Ltd. v. Union of India [2006] 5 STT 80 (Guj.) submitted that it was not liable to service tax.

HELD

The decision relied upon by the assessee pertained to period prior to 1-7-2003 and same was not applicable to facts of instant case inasmuch as the demand of tax on the assessee was for a period from 1-7-2003. It was on the said date that the levy of service tax on ‘Commercial training or coaching centre’ was introduced. [Para 1]

The assessee had not made out prima facie case against the above demand of tax. Hence, the assessee was to be directed to pre-deposit the service tax amount. [Para 2]