Order Date – 01 February 2023

Parties: The Commissioner of Customs & Central Excise Vs Vikas Educational Institutions Ltd

Facts –

• The Respondent, Vikas Educational Institutions Ltd (VEIL), was issued with a show cause notice dated 12.04.2006 which demand service tax towards the liability of the respondent for allegedly rendering commercial training and coaching services during the period 1.7.2003 to 31.3.2005, was proposed. A differential service tax was also proposed to be recovered from the respondent along with the proportionate interest and appropriate penalties.

Issue – 

• Whether the respondent is liable to pay Service tax along with interest and penalty?

Order –

• The Tribunal held that commercial coaching has been provided against collecting same fees as has been collected by VEIL, respondents and though by VES (Vikas Educational Society) also but through separate receipts. VES/VEIL are interdependent entities. VEIL was collecting money from the students in the name of tuition fee only and the oral submission is not sufficient to falsify the document in the form of receipt regarding collection of money by respondent in the name of tuition fee for providing commercial coaching.
• VEIL though admitted to be interdependent/same organizations as that of VES, but it is VEIL which was providing taxable service as that of Commercial Coaching against collecting an amount in the name of tuition fee. Hence, the demand of Service tax for providing taxable/commercial coaching services against VEIL has wrongly been dropped by the Commissioner.
• Hence the appeal filed by the revenue is allowed.