By TIOL News Service

MUMBAI, JAN 04, 2019: THE Appellant is a Public Charitable trust and conducting classes for graduation courses for students through Yashwantrao Chavan Maharashtra Open University (YCMOU). They are also providing coaching for competitive exams conducted by the UPSC and MPSPC.

The adjudicating authority inter alia observed that the Appellant is only preparing the candidates for appearing in various examinations conducted by the YCMOU and also UPSC/MPSC and, therefore, both the activities carried out by them do not get covered in the category of courses recognized by the law and hence the activities fall under the category of Commercial Training and Coaching Services. Moreover, the courses conducted are for career guidance and Entrepreneur Development, preparing youth for all types of competitive exams, test Series, English Speaking Course etc. and could not be called vocational, the original authority held while confirming the demand of Rs.52,63,542/-. The period of demand is October 2005 to March 2001.

In the matter of the stay application filed, the CESTAT held thus -

ST - Appellant is running courses recognised by university and issuing degrees - For the period prior to May 2011 prima facie the appellant is not covered under definition of "Commercial Coaching and Training Centre" - Post 2010, appellant collected ST on the fees recovered by them from the students to whom they are providing professional courses which are not recognised by the University, same is required to be paid to the department - Appellant is directed to make a pre-deposit of Rs. 16,98,532/- : CESTAT [Para 2, 6, 7, 8]

We reported this order dated 23/09/2014 as - 2015-TIOL-208-CESTAT-MUM .

Nonetheless, the appeal was decided thus -

ST - Commercial Training and Coaching - Appellants are running parallel college for imparting education in degree/diploma recognized by law - There is no doubt that the courses run by the Appellant trust are equivalent to regular courses of YCMOU and there cannot be any distinction between the regular colleges and the education imparted by the Appellant - Appellant is not liable to service tax: CESTAT [para 4]

Please see - 2018-TIOL-1218-CESTAT-MUM, Order dated 22/03/2018.

Against this final order, Revenue has filed a miscellaneous application seeking for rectification of mistake.

It is submitted that though the issue regarding collection of deposit from students in lieu of service tax for the period May 2010 to March 2011 was considered in the stay order dated 23/09/2014 - 2015-TIOL-208-CESTAT-MUM, the same was not considered by the Tribunal at the time of passing of final order dated 22/03/2018.

Furtheremore, there is no specific finding with regard to leviablity of service tax for the period October 2005 to July 2006 inasmuch as during such period, the appellant was not recognized as study centre for providing graduation and other degrees or diploma courses of Yashwantrao Chavan Maharashtra Open University (YCMOU).

The Bench agreed with the submissions of the AR and observed thus -

"3. On going through the case records, more specifically, the stay order dated 23/09/2014 passed by the Tribunal, we are of the prima facie view that the observations recorded in the said order have not been properly considered by the Tribunal while passing the final order dated 22/03/2018. Thus, we are of the considered opiniion that there are apparent mistake in the final order dated 22/03/2018, which can be called for rectification in the interest of justice."

The miscellaneous application filed by the Revenue was allowed.

(See 2019-TIOL-44-CESTAT-MUM)