Page 187 - ELT_3rd_1st May 2020_Vol 372_Part

2020 ] MANIPAL UNIVERSAL LEARNING PVT. LTD. v. COMMR. OF C. EX., MANGALORE 409

Indian National Shipowners Association v. Union of India
— 2009 (14) S.T.R. 289 (Bom.) — Relied on ........................................................................... [Paras 8, 15]
Intercontinental Consultants and Technocrats Pvt. Ltd. v. Union of India
— 2013 (29) S.T.R. 9 (Del.) — Referred .......................................................................................... [Para 8]
Jindal Drilling and Industries Ltd. v. Commissioner —
2016 (41) S.T.R. 203 (Tribunal) — Referred ................................................................................... [Para 8]
KEHEMS Consultants Pvt. Ltd. v. Commissioner — 2015 (39) S.T.R. 682 (Tribunal)
— Referred ......................................................................................................................................... [Para 6]
Nizam Sugar Factory v. Collector — 2006 (197) E.L.T. 465 (S.C.) — Referred ........................... [Paras 4, 11]
Paro Food Products v. Commissioner — 2005 (184) E.L.T. 50 (Tribunal) — Referred ..................... [Para 4]
Union of India v. Intercontinental Consultants and Technocrafts Pvt. Ltd.
— 2018 (10) G.S.T.L. 401 (S.C.) — Referred .................................................................................. [Para 8]
DEPARTMENTAL CLARIFICATIONS CITED
C.B.E. & C. Circular No. 59/8/2003-S.T., dated 20-6-2003 .......................................................... [Paras 7, 13]
REPRESENTED BY : S/Shri K.S. Ravi Shankar, N. Anand and N. Satish
Kumar, Advocates, for the Appellant.
Mrs. D.S. Sangeetha, Jt. Commissioner (AR), for the
Respondent.
[Order per : P. Anjani Kumar, Member (T)]. - The brief facts of the case
are that the appellant is engaged in the activity of providing education through
distance education program for Universities. During the period of dispute, the Ap-
pellant entered into a Memorandum of Agreement (MOA) dated 11-11-2004 with
Sikkim Manipal University of Health, Medical and Technological Sciences, for (i)
promotion of distance education program of SMU in Clause 4 of the MOA and
(ii) to provide infrastructure and services as per Clause 5 of the MOA. The Ap-
pellant has in-turn entered into an agreement called Learning Centre Agreement
(LCA) with various parties granting licence to set up an authorised Learning
Centre of the Appellant with respect to distance education programmes of Uni-
versities with whom the Appellant has entered into contracts. In terms of this
LCA, the party has agreed to provide infrastructure and facilities for the purpose
of providing distance education programme of SMU/other Universities. Since
the entire activity is a “distance education programme” the Appellant has sup-
plied VSAT (Very Small Aperture Terminal) equipment to the contracting party.
In terms of LCA, the Appellant receives consideration as follows from the con-
tracting parties - (i) Affiliation fee; (ii) Inspection Fee; (iii) Licence Fee; (iv) One-
time VSAT Management Fee and (v) Actual VSAT user costs/reimbursements.
2. Revenue, after investigation, issued a show cause notice, dated 11-3-
2008, demanding Service Tax in respect of (i) Affiliation Fee; (ii) Inspection Fee;
(iii) Licence Fee, under the category of “franchise service”. The said notice was
adjudicated by passing OIO No. 15/2008, dated 2-7-2008. The Appellant did not
contest the OIO and paid the Service Tax along with interest and penalty. Reve-
nue issued another show cause notice dated 26-5-2008 alleging that the appellant
is liable to pay Service tax, on the VSAT charges received (both onetime fee and
usage charges), under “franchise service” for the period July 2003 to August
2007. Commissioner, vide OIO No. 25/08, dated 24-12-2008 (impugned order),
confirmed the demand of Rs. 87,40,770 with equal penalty under Section 78 and
other penalties, invoking the extended period of limitation. Hence, the present
appeal is filed.
3. Shri Ravi Shankar, Senior Counsel, appearing for the appellants
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