The Central Excise and Service Tax Tribunal (CESTAT) Ahmedabad, held that if the service provided by IILM Business School are not falling under category excluded from the definition of Commercial Coaching and Training and are liable to pay service tax.
The appellants are engaged in imparting courses such as MBA, PGP programs (industry integrated). A Show cause notice was issued to the appellant demanding service tax on this activity under the head of ‘Commercial Coaching and Training’.
The IILM Business School was set up by the International School of Learning in Management trust a Public Charitable Trust and it was an approved center of Eastern Institute of Integrated Learning in Management University Sikkim which in turn is approved by University Grants Commissioner.
It was also stated that the Eastern Institute of Integrated Learning in Management University Sikkim has full authority and legal sanction to grant degrees and diplomas as per section 22 of the said Act to its student upon successful completion of the course, after qualifying the exams. All the enrolled students were required to complete the course as prescribed by the university.
The Tribunal observes that the appellants are not granting any degree recognized by law but are acting as a knowledge hub for EIILM University set up by State Government of Sikkim and which is approved by University Grant Commissioner.
The Tribunal comprising of President, Justice Dilip Gupta and Technical Member Raju made an order on an appeal filed by M/s. IILM Business School.
The Tribunal observed that the appellants were aware of their tax liability as they have registered in Kota, Rajasthan and paid Service Tax. There is no logic or rationale on the different stand taken by the appellant in Kota and Andhra Pradesh. The appellants are not entitled to a bona fide belief that they are not liable to pay Service Tax.
In the light of the decision of Tribunal in case of Shri Chaitanya Educational Committee dismissed the appellants are liable to pay service tax on the service provided by them as the appellants are not falling under any category excluded from the definition of Commercial Coaching and Training.
While dismissing the appeal CESTAT upheld the decision of the lower tribunal that the appellants are liable to pay service tax on the service provided by them as the appellants are not falling under any category excluded from the definition of Commercial Coaching and Training.To Read the full text of the Order CLICK HERE