Service Tax – Cestat Ahmedabad: Appellant happen 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, hence invoking extended period of limitation is not justified – Appeal allowed [Order attached]
Order Date – 22 September 2023
Parties: Sophisticated Instrumentation vs. C.C.E. & S.T.-Vadodara
- 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.
- Whether the appellant falls under the definition of a "Commercial Training or Coaching Centre" for the purpose of service tax?
- 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.