Order Date – 22 March 2024

Parties: M/s. Globsyn Technologies Limited Vs Commissioner of Service Tax

Facts –

• The Appellant, M/s. Globsyn Technologies Limited, offering some courses recognized by law in collaboration with some Universities and vocational courses. Since the vocational training provided by a Coaching Center is exempted from payment of service tax, the appellant has not paid service tax for the charges received for these vocational courses.
• A Show Cause Notice was issued demanding service tax from the appellant under the category of 'Commercial and industrial coaching service. The demand of service tax along with interest and penalty raised in the Notice are confirmed.

Issue –

• Whether charges received for vocational courses by the appellant are liable to service tax?

Order –

• The Tribunal observed that there is no specific finding in the impugned order to the effect that the coaching offered by the appellant are not vocational training. A perusal of the Brochures submitted by the appellant clearly reveal that most of the courses offered by the appellant are vocational training. Accordingly, held that the appellant are eligible for the benefit of Notification No. 24/2004-ST 10.09.2004.
• For the remaining courses, the legal status of respective universities is not in dispute. The syllabus for these courses are prescribed by the universities in consultation with the appellant institute and examinations are also conducted by the universities which thereafter issues certificate/degree/diploma to successful candidates. Therefore, it is held that the appellant institute provided educational qualification recognized by the law and are accordingly outside the ambit of 'commercial training or coaching services. Hence, there is no service tax liability on these services.
• Thus it was held that the demand of service tax confirmed in the impugned order is not sustainable. Since, the demand itself is not sustainable, the question of demanding interest and imposing penalty does not arise.