CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHENNAI REGIONAL BENCH – COURT No. III Service Tax Appeal No. 42493 of 2015 (Arising out of Order-in-Appeal No. 196/2015 (STA-I) dated 21.09.2015 passed by Commissioner of Service Tax (Appeals-I), Newry Towers, No. 2054-I, 12^th Main Road, Anna Nagar, Chennai – 600 040)

With Service Tax Appeal No. 41038 of 2016 (Arising out of Order-in-Appeal No. 130/2016 (STA-I) dated 22.02.2016 passed by Commissioner of Service Tax (Appeals-I), Newry Towers, No. 2054-I, 12^th Main Road, Anna Nagar, Chennai – 600 040)

And Service Tax Appeal No. 41104 of 2016 (Arising out of Order-in-Appeal No. 172/2016 (STA-I) dated 22.03.2016 passed by Commissioner of Service Tax (Appeals-I), Newry Towers, No. 2054-I, 12^th Main Road, Anna Nagar, Chennai – 600 040)

M/s. International School for Management Studies Societies for Social Education and Research ...Appellant No. 32, Casa Major Road, Egmore, Chennai – 600 008.

Versus Commissioner of GST and Central Excise ...Respondent Chennai Outer Commissionerate, Newry Towers, No. 2054-I, 12^th Main Road, Anna Nagar, Chennai – 600 040.

APPEARANCE:

For the Appellant : Mr. M.N. Bharathi, Advocate For the Respondent : Ms. Anandalakshmi Ganeshram, Authorised Representative CORAM:

HON’BLE MR. P. DINESHA, MEMBER (JUDICIAL)

HON’BLE MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL)

FINAL ORDER Nos. 40009-40011 / 2026 DATE OF HEARING : 21.07.2025 DATE OF DECISION : 08.01.2026 Per Mr. VASA SESHAGIRI RAO The Appellant, M/s. International School for Management Studies (ISMS), is an administrative unit of Society for Social Education & Research (SSER), registered under the Societies Registration Act, 1860. The Appellant conducts a one-year Post Graduate programme in Management (ISMS course) at Chennai.

1.2 Under a twinning arrangement with Missouri State University, Springfield, USA, students who successfully complete the first-year programme conducted by ISMS in India may, subject to fulfillment of eligibility conditions such as GMAT and visa requirements, join the second year MBA programme at Missouri State University. There is no financial obligation or revenue sharing between ISMS and the foreign university.

1.3 The Department was of the view that the first- year foundation course conducted by ISMS did not lead to an educational qualification recognized by law in India and hence fell under “Commercial Training or Coaching Service” as defined under Sections 65(26), 65(27) read with Section

65(105)(zzc) of the Finance Act, 1994.

1.4 Accordingly, Show Cause Notices were issued for various periods, proposing demand of service tax along with interest and penalties under Sections 76 and 77 of the Act.

1.5 The demands were confirmed by the Adjudicating Authority and upheld by the Commissioner (Appeals). Being aggrieved, the Appellant is before this Tribunal.

1.6 For the earlier period from April 2006 to March 2007, two Show Cause Notices were issued to the Appellant, culminating in Order-in-Original Nos. 61/2007 and 208/2007, confirming service tax demands under the category of Commercial Training or Coaching Service along with interest and penalties.

1.7 The Appellant’s appeals against the said Orders- in-Original were rejected by the Commissioner (Appeals) vide Order-in-Appeal Nos. 67/2009 (MST) and 68/2009 (MST).

1.8 Aggrieved thereby, the Appellant approached this Tribunal. The CESTAT, Chennai, vide Final Order Nos. 839 & 840/2010 dated 02.08.2010, set aside the appellate orders and remanded the matter to the Adjudicating Authority with a specific direction to examine:

the effect and implication of the retrospective amendment to Section 65(105)(zzc) introduced by the Finance Act, 2010;

and the Appellant’s contention that it was not a commercial concern, since any surplus was required to be ploughed back into educational activities.

1.9 Pursuant to the said remand, the Adjudicating Authority passed the Order-in-Original No.72/2011 dated 31.10.2011, once again classifying the Appellant’s activity under Co