Training courses for end users conducted by Manufacturer - not liable to ST under ‘Commercial Training & Coaching Service'
THE applicants are the manufacturers of dynamometers. They are organising training programme for their customers to educate them as to how to use their product. For this training programme, the applicants are charging some amount from the customers towards reimbursement of expenses incurred on the training programme.
Revenue is of the view that service tax is payable by the appellant under the category of ‘Commercial training and Coaching Service'.
A demand for recovery of ST of Rs.24,880/- was issued and the same was confirmed along with equivalent penalty and interest and which order was upheld by the Commissioner(A).
The Bench observed -
“3. Prima facie, I am of the view that as this service is not provided by the applicant as a Commercial training and Coaching Institute and moreover the training programme is not open to everybody, the said service is limited to the customers only and customers are reimbursing the expenses incurred by the applicant for training programme, the applicants required to pay service tax on the said service. Therefore, I waive the requirement of pre-deposit of service tax, interest and penalty and stay recovery thereof during the pendency of the appeal.”
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