THE CLIQUE (PERSONALITY DEVELOPMENT INSTITUTE) Vs. CCE

JUDGEMENT

(1.) LD . Counsel Shri Balbir Singh submits that the appellant is coaching centre. They prepared candidates to appear for the examination conducted by the Insurance Regulatory and Development Authority (IRDA). This coaching is specifically not a commercial coaching for the reason that the candidates do not pay the fees directly to the appellant but the cost of the coaching is paid by Insurance Companies since candidates have been sponsored by them. Only, coaching is given to such sponsored candidates who appear for examination conducted by IRDA to get them self employed. For such reason, candidates undergo vocational training. Accordingly, vocational training, being given by the appellant, payment of service tax is exempt.

(2.) LD . DR submits that the appellant's institute provides coaching in the commercial manner. The manner of payment of fees may not be criteria and who pays is also not relevant. Nature of service provided is criteria for taxes. The coaching provided by the appellant is commercial venture in a mass scale. Therefore, whether the candidate appears in examination or not after coaching, that does not gain any consideration or importance. Accordingly, the appellant should be liable to pay service tax and pre -deposit may be ordered.

(3.) PRIMA -facie, we are satisfied that the appellant deserves consideration at this stage in view of nature of activity carried out to prepare candidates for examination by IRDA, under sponsorship of Insurance Companies. We do not express any opinion on the submissions of the Ld. Counsel at this stage. The decision of the Hon'ble High Court of Kerala was in respect of a charitable society. In that decision, the ratio laid down in W.P.C. No. 728/04 was followed holding that an educational institution conducting any course which is a requirement to write examination to obtain degree or certificate awarded by any agency created by law, is entitled to exemption under Section 65(27) of the Finance Act, 1994. In the present appeal, submissions of both sides required to be tested on the touch stone of law. However, looking to the legal citations, we direct waiver of pre -deposit during pendency of the appeal.