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Trichy Institute of Management Studies (P) Ltd. v/s Commissioner of Central Excise, Trichy

Company & Directors' Information:- TRICHY INSTITUTE OF MANAGEMENT STUDIES PRIVATE LIMITED [Strike Off] CIN = U80902TN2003PTC050689

Company & Directors' Information:- CENTRAL MANAGEMENT LTD [Strike Off] CIN = U74140WB1945PLC012481

    Appeal No.ST/COD/422 of 2010, ST/S/295 of 2010 & ST/514 of 2010 [Arising out of Order-in-Appeal No.9/2010 dt. 29.1.2010 passed by the Commissioner of Customs, & Central Excise (Appeals), Tiruchirapalli]

    Decided On, 07 September 2011

    At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Chennai


    For the Appellant: Rajendra Kumar, C.A. For the Respondent: Parmod Kumar, Jt.Commr. (A.R).

Judgment Text

Per Jyoti Balasundaram1. The delay of 92 days in preferring the above appeal is condoned as the delay is attributable to the illness of the Director of the appellant-institute, and the plea of illness is supported by medical certificate.

2. Now, we take up the application for waiver of predeposit. However, we find that it is possible to dispose of the appeal itself as the issue in dispute stands covered by the decision of the Tribunal in the assessee’s own case viz. Final Order No.286 & 287/11 dt. 7.2.2011; hence we take up the appeal for final disposal with the consent of both sides after waiving predeposit.

3. The identical issue in the case of the same assessee came up before the Tribunal as mentioned herein above and the Tribunal has held as follows :-

'4. We have considered the arguments advanced on behalf of the appellants. Their claim that the institution run by them is like a parallel college and that the students are obtaining degrees from the Alagappa University through the Distance Education Programme is supported by the Memorandum of Understanding submitted by them. We have perused the decision of the Hon’ble Kerala High Court in the cited case of Malappuram Distt. Parallel College Association (supra). It has been held by Hon’ble Kerala High Court in the cited case that the provisions of the Finance Act, 1994 authorizing levy of service tax on parallel colleges are arbitrary and violative of Article 14 of the Constitution of India. It has also been held by the Hon’ble Kerala High Court that levy of service ax for services rendered by parallel colleges, which indirectly falls on students, but by simultaneously providing exemption to regular affiliated colleges allowing students therein to study free of tax, is patently discriminatory and violative of Article 14 of the Constitution of India.

5. Following the ratio of the cited decision of the Hon’ble Kerala High Court, which has been followed by the Tribunal in the case of JMC Educational Charitable Trust vs. CCE, Trichy vide Final Order No. 1027 dated 23.9.2010, we are of the view that the levy of service tax in respect of the training and coaching provided by the appellants which form an essential part of a course or curriculum of a university, leading to issuance of certificate or diploma or degree to the students recognized by law is not justified, even though the same is ob

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tained by the students of the institution run by the appellants through Distance Education Programme. Hence, the impugned order is set aside and the appeal is allowed.' 4. In the light of the above decision, we set aside the impugned order and allow this appeal.