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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, Dr. Chittaranjan Satapathy, Vice President
International School for Management Studies -Appellant
Versus
Commissioner of Service Tax, Chennai -Respondent
FINAL ORDER NOS. 839 & 840 OF 2010 STAY ORDER NOS. 355 & 356 OF 2010 APPLICATION NOS. ST/S/135 & 136 OF 2010 APPEAL NOS. ST/231 & 232 OF 2010
Decided On : 02-08-2010
M.V. Raman,T.H. Rao
Ms
. Jyoti Balasundaram, Vice President. - For the reasons recorded below, we dispense with the pre-deposit of service tax of Rs. 7,84,458 and proceed to hear the appeals themselves at this stage with the consent of both sides.
2. Demands have been confirmed for the period July 2003 to 31-3-2007, against the assessees on the ground that they were rendering "Commercial Training or Coaching Services". The assessees argument before the authorities was that their’s was not a commercial concern in the sense that the profits earned are required to be ploughed back to the institution. The Ld. Counsel for the assessees brings to our notice the retrospective amendment to clause (zzc) of section 65(105), providing that any centre or institute whether registered as a trust or society or similar other organization carrying on its activity with or without profit motive, shall be construed as a commercial training or coaching centre. The effect and implication of this meaning, which was introduced in the 2010 Budget requires to be considered by the adjudicating authority. For this reason, we set aside the impugned order and remit both the cases for fresh decision to the adjudicating authority, who shall decide the issue and pass fresh orders in the light of the above, after extending a reasonable opportunity to the assessees of being heard in their defence. All issues including time bar are left open for fresh consideration.
3. The appeals are thus allowed by way of remand.
