Order date: 23 January,2023

Parties: ICFAI BRANCH vs C.C.E. & S.T.-Vadodara-II 

Facts:

• The petitioner ICFAI BRANCH which was inter-alia engaged in imparting educational programmes in the areas of finance, banking, insurance, accounting etc. courses degree certificates were awarded by ICFAI University Dehradun established under the respective State Act and recognised by UGC. The aforesaid educational programmes help the students to get employed with various organisations. With effect from 01.10.2007, all the of Appellant transferred to the ICFAI Academy
• SCN was issued for the period of October 2007 to September 2009 on the ground that Appellant had provided taxable services under the category of  Commercial Training or Coaching" and collected fees during the relevant period. Appellant is neither recognized by the UGC nor have any prior permission/approval of regularly statutory bodies like AICTE etc. 

Issue:

• Whether the appellant is providing Commercial Training or coaching services?

Order 

• The Tribunal relied on its own case passed for the appellant that Notification No. 3/2010-S.T., dated 27-2-2010 can only have prospective effect and cannot alter the definition of the expression vocational training institute retrospectively. Vocational Training Institute as defined by Notification No. 24/2004-S.T., dated 10-9-2004 contains no such restrictive definition which requires affiliation to National Council for Vocational Training or the requirement of offering courses in designated trades as notified under the Apprentices Act, 1961, by an Industrial Training Institute or an Industrial Training Centre. 
• It is impermissible for an authority conferred with the power to enforce provisions of the Act, to interpret the Act or exemption Notifications issued thereunder, by resorting to assumptions impermissible in law. For the aforesaid reason, the adjudication order is fallacious and unsustainable. It is accordingly quashed. The appeal is allowed.” 
• In view of the above decision, the Appeal were allowed with consequential relief.