By Puloma Dalal, Jayesh Gogri, Chartered Accountants
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Training and coaching to persons who have education at least upto 12th Standard – In fields of Fashion Technology, Advertisement, Graphic design, Media, Hospitality etc. – Is it vocational training eligible for exemption?- Held, Yes.
Facts:
The appellant was engaged in providing voluntary training and coaching in the field of Business, Fashion Technology, Advertisement, Graphic design, Media, Hospitality and Hospital administration. Appellant admitted that the activities were falling within the definition of commercial coaching and training. However, he claimed exemption under Notification no. 9/2003 ST dated 30/06/2003 exempting services provided by Vocational Training Institutes. The said exemption was rescinded on 30/06/2004 and was reintroduced on 10/09/2004. Appellant paid service tax for the period 01/07/2004 to 09/09/2004. However, he again claimed exemption under Notification no. 24/2004 ST dated 10/09/2004 from 10/09/2004 onwards.
The Revenue contended that the appellant provided training to persons who had education at least upto 12th Standard and such training provided to persons with such education cannot be considered as vocational training. The Revenue also argued that training in areas like welding, carpentry, etc. where the level of education required is low, qualified to be “vocational training”.
According to the appellant, the matter was already examined at length by the Tribunal in the past in their own case at Bangalore and also in case of another appellant – Ashu Export Promoters Pvt. Ltd. 25 STR 359.
Held:
Following judgments in case of Ashu Export Promoters Pvt. Ltd. (supra) and in case of the appellant’s own case – 8 STR 475, it was decided that the appellant is entitled to claim exemption.
