Whether trainings on international travel and tourism eligible for exemption as vocational training?

PJ/Case Law /2016-17/3245

Case:- GLOBE COLLEGE OF TRAVEL AND TOURISM VERSUS C.C.E. & S.T., MANGALORE

Citation:-2016 (43) S.T.R. 241(Tri. - Bang.)

Brief Facts:-The matter concerns with the benefit of Notifications No. 9/2003-S.T., dated 20-6-2003 and No. 24/2004-S.T., dated 10-9-2004. The appellant says that they have been conducting vocational trainings on ‘international travel and tourism’ under the guidance and authorization of International Air Transport Association (IATA), Canada. The candidates undergo this course with the objective of seeking employment in the sector of Travel & Tourism Industry. The appellant has given a list of the last batch of the students saying that all their last batch students got the job with different travel & tourism companies including various Airlines.

Appellant’s Contention:- Learned advocate, Shri M.S. Nagaraj appearing for the appellant argues that considering above facts, they are entitled to the benefit of Notifications No. 9/2003-S.T., dated 20-6-2003 and No. 24/2004-S.T., dated 10-9-2004 for the respective period. In support of this claim, learned advocate cites Hon’ble High Court of Delhi decision in the case of Commissioner of Service Tax, Delhi v. Ashu Exports Pvt. Ltd. [2014-TIOL-379-HC-DEL-ST = 2014 (34) S.T.R. 161 (Del.)] and submits that it has upheld the CESTAT, Delhi decision for the same service in case of service provider, Ashu Export Promoters (P) Ltd.

Respondent’s Contention:- Learned AR, Shri N. Jagdish appearing for the Revenue argues that the training course conducted by the appellant is not a recognized course under any Indian law. He argues that it is also not verified that all the candidates who underwent this course got vocational employment thereafter. He says that as this course is not recognized by any Indian law, the appellant is not entitled to the benefit of exemption notification given to such courses.

Reasoning of Judgment:- After considering the facts of the case and the submissions of both the sides, it is clear that the contents of the Notifications namely 9/2003-S.T., dated 20-6-2003 and 24/2004-S.T., dated 10-9-2004 clearly cover the training course (commercial training/coaching) being conducted by the appellant, who are a vocational training institute as mentioned in the Explanation given in the subject notification. There cannot be any other interpretation of these notifications and the contents of these notifications clearly favour the appellant in case of the course (training/coaching) in question being conducted by them.
In view of the above findings, the appeal is allowed.

Decision:-The appeal is allowed.

Comment:-The gist of the case is that the appellant providescoaching in international travel and tourism which is squarely covered in explanation to Notification Nos. 9/2003-S.T. and 24/2004-S.T wherein exemption from service tax is there for vocational training institutes. Hence, the service tax demand was set aside and appeal was allowed.

Prepared by:- Ritika Mehta

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PJ/Case Law /2016-17/3245

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