Checkmate Services Pvt. Ltd. Vs Commissioner of C.E. & S.T. (CESTAT Ahmedabad)
The case concerns an appeal filed by Checkmate Services Pvt. Ltd., Vadodara, against an order of the Commissioner (Appeals) relating to service tax liability on activities undertaken under the Pandit Deen Dayal Upadhyay–Grameen Kaushalya Yojna (DDU-GKY). The appellant was engaged in providing services under the scheme, which included offering skilling courses to rural youth who met the eligibility criteria specified in the DDU-GKY guidelines. The activities also included mobilization, counselling and selection of candidates before commencement of training courses, involvement of institutions of the poor and Gram Panchayats with assistance of the State Rural Livelihood Mission, counselling of candidates and their parents regarding employment prospects, maintaining a dedicated website displaying candidate lists selected through aptitude tests and counselling, checking training centres for compliance with prescribed parameters, and providing placement to trained candidates.
During an audit of the appellant’s records, it was found that no service tax had been paid on the services provided to Gujarat Livelihood Promotion Company Ltd. The department considered these activities to fall under “Commercial Training and Coaching Services”. Following inquiry, a show cause notice dated 1 April 2019 was issued demanding service tax amounting to ₹17,41,470 under Section 73(1) of the Finance Act, 1994, along with interest under Section 75 and penalties under Sections 77 and 78 of the Act.
