Institute Imparting Training in Foreign Languages Exempted from Service Tax: CESTAT [Read Order]

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The Mumbai Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in Commissioner of Central Excise vs. Consistent Software Technologies (I) Pvt. Ltd. held that institutes imparting training in foreign languages are exempted from service tax.

The issue before the tribunal was whether the commercial training or coaching centre that provide training and coaching of foreign languages such as French, German, Japanese, Spanish etc. falls under ‘vocational training’ and consequently exempted under Notification No.9/2003-ST.

The Authorised Representative (A.R) of the Revenue argued that training in foreign languages does not fall under the vocational and the same was clearly covered by commercial training or coaching service, hence liable to service tax. He submitted that as per the definition of vocational training institute, it covers only those training which enable the trainee to seek employment or undertake self-employment directly after such training. The Counsel for the respondent relied on the decisions of the Tribunal in Anurag Soni vs. CCE & Innovative Training Place (P) Ltd. vs. CST.

The CESTAT Bench comprising of Judicial Member Ramesh Nair & Technical Member C.J. Mathew relied on the cases submitted by the counsel for the respondent and observed “On perusal of the impugned order, we find that the learned Commissioner (Appeals) after examining the scope of the Board circular, has given a clearing finding and also relying on the Tribunal’s judgment in the case of Col’s Calibre – 2011 (24) STR 427 (Tri.-Chennai), which was the issue of training centre for communicative English, personality enhancement etc., has given a detailed finding for

setting aside the demand confirmed in the original order. Therefore, we do not find any infirmity in the impugned order, hence the same is upheld. Revenue’s appeal is dismissed.”

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