Order Date – 22 September 2023

Parties: Sophisticated Instrumentation vs. C.C.E. & S.T.-Vadodara 

Facts –

• The Appellant, Sophisticated Instrumentation, is managed by Charutar Vidya Mandal, a non-profit organization registered as a public charitable trust. They provide training facilities to students of the Institute of Science and Technology and Charutar Vidya Mandal.
• A Demand of service tax was confirmed against the appellant under the head” "Commercial Training or Coaching Service" for the period 2006-2007.

Issue –

• Whether the appellant falls under the definition of a "Commercial Training or Coaching Centre" for the purpose of service tax?

Order –

• The Tribunal observing the definition and explanation of Commercial Training and Coaching Centre found that prior to 2010, there was a confusion regarding the nature of institute which are covered under the definition of Commercial Training or Coaching Centre.
• In the instant case, the appellant happens to be a charitable trust and held a belief that they are not a “Commercial” Training or Coaching Centre and therefore, did not discharge the service tax.
• In these circumstances, invocation of extended period of limitation is not justified. The impugned order is, therefore, set aside and appeal is allowed on the ground of limitation.