CCE Vs. M/S. IIAS EDUCATION SOCIETY

JUDGEMENT

(1.) THIS appeal is filed by Revenue against the Order -In -Appeal No. 05 -ST/RPR -II/2008 dated 26.02.2008 passed by the Commissioner (Appeal) Central Excise Raipur -II. M/s. IIAS Educational Society (hereinafter referred to as Respondents) were permitted to function as university by Chhattisgarh Government under Section 5 of Chhattisgarh Nizi Kshetra Vishwavidyalaya (Sthapana aur Viniyam) Adhiniyam 2002. Respondents were not having any approval from any statutory bodies like AICTE, NCTE for running various courses as required under University Grant Commission Regulations 2003. In 2005 Supreme Court vide its order dated 11.02.2005 declared aforesaid Adhiniyam 2002 as ultra vires. Accordingly Department issued a Show Cause Notice demanding service tax on fees collected by the Respondents under category of Commercial Training and Coaching service for the period September 2003 to January 2005. Deputy Commissioner confirmed the service tax amounting to Rs. 1,23,644/ - along with interest against the Respondent and imposed the penalties under Section 76, 77 and 78 of the Act. Respondents filed appeal before Commissioner (Appeal), who vide impugned order allowed their appeal holding demand as time barred. Revenue has challenged this order in the present appeal.

(2.) HEARD Ld. DR Shri M.S. Negi as none appeared for Respondents. We find that demand pertains to the period September 2003 to January 2005. During this disputed period, Respondents were having valid permission from Chhattisgarh Government for functioning as University. When state Government itself granted them permission for running a university, there can not be any intention of evasion of service tax by the Respondents. We therefore do not find any infirmity in the impugned Order -In -Appeal and uphold the same and reject the Revenue's appeal.