NATIONAL INSURANCE ACADEMY Vs. COMMR. OF SERVICE TAX

JUDGEMENT

(1.) At the instance of the Counsel for the parties, the appeal is being disposed of at the stage of admission. This appeal under Section 83 of the Finance Act, 1994 read with Section 35G of the Central Excise Act, 1944 challenges the order dated 21 October, 2013 of the Customs, Excise and Service Tax Appellate Tribunal (the Tribunal) [2014 (33) S.T.R. 245 (Tribunal)]. By the impugned order dated 21 October, 2013, the appellant was directed to make pre-deposit of 50% of the confirmed Service Tax demand of Rs. 5,34,65,194/- (without interest and penalty) for the purpose of entertaining its appeal on merits from the order in original dated 25 February, 2013 of the Commissioner of Service Tax.

(2.) Although the appellant has raised several questions of law, the basic dispute relates to the liability of the appellant to pay Service Tax under the head 'Commercial Training or Coaching' of the Finance Act, 1994 (the said Act) in respect of an MBA course conducted by it. The contention of the appellant is that the show cause notice dated 2(j) April, 2012 raising a demand of Rs. 5,34,65,194/- for the period October, 2006 to March, 2012 is substantially time-barred and that financial hardship in making pie pre-deposit would make the impugned order dated 21 October, 2013 unsustainable.

(3.) The appellant is a society registered under the Societies Act, 1860 and also registered under the Bombay Public Trusts Act, 1950. The appellant has been formed by Government of India, Life Insurance Corporation, General Insurance Corporation and its four subsidiaries. The appellant's objective is of rendering education in the field of insurance without profit motive. The appellant is exempted from payment of Income Tax under the Income Tax Act, 1961, since the income generated by its activities is considered to be charitable in nature.