Computer Education Service not eligible for exemption under Vocational Training, Service Tax leviable: CESTAT [Read Order]

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Computer Education service was not eligible for exemption under the vocational training and was liable to pay Service tax.

A Coram of Mr Ramesh Nair, member (judicial) and Mr Raju, member (technical) observed that the appellant is liable to pay service tax under the category of Commercial Training or Coaching Service for the computer training provided by the appellant to the students during the period 21.06.2006 to 30.11.2009. 

Advance Computer Education, the appellant is a Society for Information & Technology Development (SITD) having a registered office in Kannur, Kerala for providing Computer Teachers Training courses, Computerised Professional Accounting courses and Wi-Fi networking. 

Since the appellant has provided the service with the brand name of SITD, they are not eligible for the small-scale exemption available under Notification No. 6/2005-ST dated 01.03.2005 and the demand of Rs. 15,114/- was confirmed invoking an extended period. On appeal, the Commissioner (Appeals), rejected the same.

The appellant has claimed that they are eligible for small-scale exemption under Notification No. 6/2005-ST as their total value as much below the threshold exemption limit of Rs. 10 Lakh per year.  Since the appellant is providing service under the brand name of another person, they are not eligible for small-scale exemption. 

It was observed that the Computer Education service has been excluded from the Vocational Training service by Notification No. 19/2005-ST dated 07.06.2005 and the period involved by the appellant was from 21.06.2006 to 30.11.2009.

The Tribunal found that for the period 21.06.2006 to 30.11.2009, the show cause notice was issued on 03.06.2010 wherein the extended period was invoked was not sustainable as the appellant has not hidden the transaction. 

The appellant is liable to service tax only for the normal period and demand for an extended period and the entire penalty is set aside, the Tribunal while partly allowing the appeal held as above. Shri Rajesh K Agarwal appeared for the Revenue while none appeared for the assessee.

To Read the full text of the Order CLICK HERE

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