Sophisticated Instrumentation Vs C.C.E. & S.T.-Vadodara-I (CESTAT Ahmedabad)
The CESTAT, Ahmedabad in the case of M/s. Sophisticated Instrumentation v. C.C.E & S.T.-Vadodara-I [Service Tax Appeal No. 11477 of 2013 dated September 22, 2023], allowed the appeal and ruled that the assessee is a charitable trust and not covered under the definition of commercial training or coaching center as per Section 65(27) of the Finance Act, 1994 and thus invocation of an extended period of limitation by five years is not justified.
Facts:
M/s. Sophisticated Instrumentation (“the Appellant”) is a charitable trust, managed by Charutar Vidya Mangal (“Parent Organization”), a non-profit organization functioning as a Public Charitable Trust. The Appellant received income, through a grant from the Department of Science and Technology, Government of India or fees paid by the Parent Organization for providing training facilities to the students of the Institute of Science and Technology for advance studies and research and students of Parent Organization. However, students do not incur any fees for training.
The Commissioner of Central Excise and Service Tax (“the Respondent”) raised a demand for payment of service tax on the amount received as revenue in lieu of service rendered by the Appellant during the financial year 2006-2007. The Commissioners (Appeal) vide order OIA-PJ/461/VDR-I/2012-13 dated February 25, 2013 (“the Impugned Order”) confirmed the demand of Rs. 2,73,022/- stating that the income earned by the Appellant falls within the purview of Commercial Training or Coaching Services (“CTCS”).
Aggrieved by the Impugned Order, the Appellant filed the appeal before the CESTAT, Ahmedabad.
Issue:
Whether the extended period of limitation can be invoked on the ground that the assessee was unaware of the chargeability of service tax with respect to specific income earned?
Held:
The CESTAT, Ahmedabad in Service Tax Appeal No. 11477 of 2013 held as under:
