Foreign Language Training Institute is Eligible for Service Tax Exemption : CESTAT [Read Order]

Service Tax Exemption

The Customs, Excise and Service Tax Appellate Tribunal in its recent order ruled that institution which imparts training in foreign language is eligible for Service Tax Exemption. The division bench was hearing the appeal of assessee against the order demanding Service tax under the category of commercial coaching and training service.

The solitary issue before the bench comprising Judicial Member Ashok Jindal and Technical Member B Ravichandran, was whether the foreign language training institute imparting training and coaching in English, Spanish, French and German, are eligible for exemption and taxable under the category of commercial training and coaching service or not.

Tribunal after hearing both parties contention and examined the tribunal in the case of M/s. British School of Language, New Delhi vs. CST, Delhi held that imparting training in foreign language will make the institute vocational training institute.

Accordingly, the Tribunal held that the assessee is eligible for exemption under Notification No. 24/2004 ST. Similarly Tribunal relied on the decision in the case of M/s. Alliance Francaise and noted that service tax demand sought to be confirmed of translation fee itself supports the case of the appellant that translation is one of the gainful employments that can be availed by the trainee of the institute.

Finally, the bench ruled that since assessee already paid the service tax on said service which was identified by Revenue later then extended period of limitation is not invokable.

To Read the full text of the Order CLICK HERE