Customs, Excise and Gold Tribunal - Bangalore
Administrative Staff College Of India vs The Commissioner Of Central Excise on 1 February, 2007
Equivalent citations: 2007(116)ECC542, 2007ECR542(TRI.-BANGALORE), 2007[6]S.T.R.319
ORDER S.L. Peeran, Member (J)
1. The appellant is a society registered under the Society Act. They are providing training to the officers of Government of India as well as the State Government before entering into Central/State Government services. It is a non-profit organization which receives fee from the candidates of non-governmental organisations. They were covered under the net of service tax under the heading of 'Commercial Coaching Services'. The appellant contends that they are not Commercial Organization and hence they do not come under the above heading. The Government has recognized their activity as non-commercial as the appellants are imparting education to the candidates selected for the Central/State Government services. Although they give training to outside candidates also but there is no profit and the activity is not covered under the net of service tax. It is submitted that they do not have any fund to pre-deposit the amount. The appellant is pleading financial hardship besides legal points. The learned Counsel reiterates the grounds made out in the stay applications. He also submits that the appellants are exempted from payment of Income Tax as they do not make any profit.
2. The learned DR submits that although they are registered as non-commercial organization, the account shows profit element also. He submits that the appellants should be put to terms.
3. On a careful consideration of the matter, we find that the Government of India has recognized their activity as non-commercial one. The appellants are rendering training to the candidates who are selected by the Central Government and the State Government. Although the appellants have provided certain training to some private candidates also, it cannot be said that they are a profit oriented organization. They have also produced Balance Sheet to show that they do not have funds to pre-deposit the amount. Therefore the stay application is allowed by granting waiver of pre-deposit of the amount and staying its recovery till the disposal of the appeal. As the amount involved in the matter is more than Rs. 1.59 crores, therefore out of turn hearing of the appeal is granted. The matter to come up for final hearing on 26th June 2007. In the meanwhile the Commissioner to file his comments and counter to the 'Grounds of Appeal'.
(Pronounced and dictated in the open court)