ACE COMPUTER EDUCATION Vs. CCE

JUDGEMENT

(1.) THESE two appeals are directed against the order in appeal dated 19.4.2006. Since the order in appeal disposes of two orders in original and issue being the same, both the appeals are disposed off by a common order.

(2.) THE issue involved in this case is regarding the service tax liability on the appellants for providing the service of commercial training or coaching. The appellants did not get themselves registered as service provider of commercial training or coaching, despite the said services being brought into service tax net w.e.f. 1.7.03. The appellants admitted their service tax liability subsequent to the visit of the officers to their coaching centre and discharged the service tax liability as indicated in the show cause notice partly prior to issue of show cause notice and partly after the issue of show cause notice. The adjudicating authority confirmed the demand and imposed penalty under the provisions of Sections 76, 77 and 78 of the Finance Act, 1994. On an appeal, the learned Commissioner (Appeals) also upheld the order in original for the imposition of penalties under Finance Act, 1994. Hence these appeals.

(3.) THE learned authorised representative appearing on behalf of the appellants, submits that they are not challenging the tax liability nor they are challenging the interest thereon or penalties under Section 77 but are challenging the penalties under Section 76 and 78. It is his submission that the service tax liability on the commercial training or coaching centres were introduced from 1.7.03 were exempt upto 30.6.04. It is his submission that the said exemption notification was not extended but they were under the bonafide impression that their services would not get covered under services of commercial training or coaching. It is submission that bonafide error was that they did not take the registration and discharge the service tax liability. They had installed 7 computers. However, the amount received by them was recorded in the books of account which would indicate that they had no intention as such to evade the service tax. He submitted that penalty should be set aside.