Service Tax is Payable On Computer Education Service Under Vocational Training: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on computer education services under vocational training.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the computer education service has been excluded from the Vocational Training service by Notification No. 19/2005-ST dated 07.06.2005. The period involved was from 21.06.2006 to 30.11.2009. Therefore, the appellant is not eligible for exemption under vocational training.The appellant is a Society for Information & Technology Development (SITD) having a registered office in Kannur, Kerala for providing computer teacher training courses, computerised professional accounting courses, and Wi-Fi networking. Since the appellant has provided the service with the brand name of SITD, they are not eligible for the small-scale exemption available under Notification No. 6/2005-ST dated 01.03.2005.The demand of Rs. 15,114 was confirmed, invoking an extended period. The appellant, being aggrieved, filed an appeal before the Commissioner (Appeals), who rejected the appeal.The issue raised was whether the appellant was liable to pay service tax under the category of commercial training or coaching service for the computer training provided by the appellant to the students during the period from 21.06.2006 to 30.11.2009.The tribunal found that the appellant has claimed that they are eligible for small-scale exemption under Notification No. 6/2005-ST as their total value was much below the threshold exemption limit of Rs. 10 lakh per year. The appellants are franchisees of SITD, and the service was also provided to the students by SITD. The appellants are providing services under the brand names of other people. Therefore, they are not eligible for small-scale exemption."We find that Computer Education service has been excluded from the Vocational Training service by Notification No. 19/2005-ST dated 07.06.2005. In this case, the period involved is 21.06.2006 to 30.11.2009. Therefore, the appellant is not eligible for exemption under the vocational training," the CESTAT noted.Case Title: Advance Computer Education Versus Commissioner of Central Excise & ST, AhmedabadCitation: Service Tax Appeal No. 272 of 2012-DBDate: 07.10.2022Counsel For Appellant: NoneCounsel For Respondent: Rajesh K AgarwalClick Here To Read Order

Service Tax is Payable On Computer Education Service Under Vocational Training: CESTAT

Mariya Paliwala

Tags