By TIOL News Service

NEW DELHI, JULY 07, 2017: EVEN though the appellant provided 'commercial training or coaching service' during the period from July 2003 to January 2006,they neither registered themselves nor paid Service Tax.

SCNwas issued to recover the service tax of Rs.60,785/- and which was confirmed along with interest and penalty by the lower authorities.

The appellant was not represented before the CESTAT.

The Commissioner(A) had negated the plea made by the appellant (that they had not paid service tax since their motive was not to earn any profit in providing the said services) on the ground that no evidence had been produced before him as to whether any profit has been earned or otherwise.

The lower appellate authority also recorded that merely because the appellants are registered as a co-operative society under the relevant Act, it did not ipso facto exempt them from paying service tax under the category of 'commercial training or coaching service'.

The Bench observed -

+ We do not find any evidence that has been placed by the appellant that the value collected is without any profit.

+ Besides, it is immaterial whether the service is rendered with profit motive or otherwise for levy of Service Tax .

Concluding that it does not find any reason to interfere with the order of the Commissioner (Appeals), the CESTAT dismissed the appeal.

(See 2017-TIOL-2315-CESTAT-DEL)