COLS CALIBRE Vs. COMMISSIONER OF C. EX., COIMBATORE

JUDGEMENT

(1.) HEARD both sides on the application for waiver of pre -deposit of Service tax of Rs. 4,20,145/ - plus Rs. 12,604/ - towards education cess together with interest. The demand stands confirmed on the ground that the assessee who is a proprietary concern running a training centre for communicative English, personality enhancement etc. and receiving fees for providing training in English for communication/personality development etc. is liable to Service tax.

(2.) The contention of the applicants is that they are entitled to exemption in terms of Notification No. , dated 10 -9 -2004. This notification inter alia grants exemption to vocational training institute which the assessee claims that they are. The definition of vocational training institute is provided in the notification itself as "a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self -employment, directly after such training or coaching". Although it cannot be disputed that the training imparted by the institute helps or assists the candidate who undergoes training to secure employment, prima facie, we are not satisfied that the training is for any particular vocation. Therefore, no case for unconditional waiver of pre -deposit has been made out. We, therefore, direct pre -deposit of Rs. 1,00,000/ - (Rupees one lakh only) towards Service tax within four weeks from today and on such deposit, pre -deposit of balance tax and interest shall stand waived and recovery thereof stayed pending the appeal. Failure to comply with this direction shall result in vacation of stay and dismissal of the appeal without prior information. Compliances to be reported on 16 -8 -2011.