T.K. Jayaraman, Technical Member. - This appeal has been filed against the Order-in-Appeal No. 8/2007 (V-II) ST, dated 20-8-2007, passed by the Commissioner of Central Excise and Customs (Appeals), Visakhapatnam.

2. Heard both the sides in the matter.

3. The appellants are imparting training to students for appearing in various competitive examinations. The services mainly "Commercial Training and Coaching" are liable to service tax with effect from 1-7-2003. They collected an amount of Rs. 81,74,000 from the students appearing for EAMCET for the year 2003 and the coaching duration was from April to July 2003. The appellants rendered training course to Group-I candidates sponsored by Social Welfare Department of Andhra Pradesh. According to the Department, there was some short payment of service tax as the appellants deducted an amount of Rs. 8,500 towards the Mess charges out of the gross amount received. In view of the above, the proceedings were initiated against the appellants. The Original authority demanded the following amounts :-

(i)Service Tax amount of Rs. 2,02,800.

(ii)Interest under section 75 of the Finance Act, 1994.

(iii)Penalty of Rs. 100 per day for delayed payment