Page 160 - GSTL_2nd July 2020 _Vol 38_Part 1

78 GST LAW TIMES [ Vol. 38
2020 (38) G.S.T.L. 78 (Tri. - All.)

IN THE CESTAT, REGIONAL BENCH, ALLAHABAD
[COURT NO. I]
Justice Dilip Gupta, President and Shri Anil G. Shakkarwar, Member (T)
NIRAJ PRASAD
Versus
COMMISSIONER OF C. EX. & S.T., KANPUR
Final Order No. ST/A/71597/2019-CU(DB), dated 17-7-2019 in Appeal
No. ST/3834/2012
Educational services - Service rendered “in relation to” education - Ex-
emption under Notification No. 14/2004-S.T. - Eligibility to - Agreement exe-
cuted between assessee and Career Launcher (India) Limited whereby assessee
granted licence to operate professional learning centre - Assessee engaged in
activity of preparing students not only for entrance examination, but also for
academic courses, though at higher level - Activity conducted by assessee ‘in
relation to education’ and, therefore, assessee clearly entitled to benefit of im-
pugned exemption notification - Word “education” has wide meaning and in-
cludes practice of teaching or training in particular subject - Apart from other
services, assessee also providing ‘education’ to students - Therefore, principles
enumerated in Sunbeam Infocomm Pvt. Ltd. [2015 (37) S.T.R. 129 (Tri. - Bom.)]
to apply with greater force. [paras 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29]
Demand - Educational services - License agreement executed between
assessee and Career Launcher (India) Limited under which assessee granted
right to use trademark, logo and proprietary system developed by Career
Launcher regarding various courses - Show cause notice issued alleging as-
sessee providing service to Career Launcher hence liable to pay Service Tax on
75% amount transferred by Career Launcher to assessee under category of
Business Auxiliary Service - HELD : Perusal of agreement reveal that assessee
entitled to 75% of net revenue amount deposited in bank account of Career
Launcher towards fees collected from students, while Career Launcher entitled
to remaining 25% - Arrangement to be typical revenue sharing model
arrangement - Assessee receiving fixed amount per annum or per month but
only certain percentage of net revenue - Assessee not service provider and Ca-
reer Launcher not service recipient - No service, therefore, provided to Career
Launcher so as to attract payment of any Service Tax - Impugned order cannot
be sustained - Impugned order set aside. [paras 15, 16, 17]
Demand - Educational Service - Double Taxation - Career Launcher
having central registration with Department and assessee’s premises included
in Centralized registration - Service Tax paid on entire amount of fees deposit-
ed by students - Entire arrangement on revenue sharing basis, and part of fee
collected remitted to assessee by Career Launcher - Therefore, assessee cannot
be required to again pay service tax on impugned fee - Section 73 of Finance
Act, 1994. [paras 30, 31, 32]
Demand - Business Auxiliary Service - Bare perusal of order passed by
Commissioner (Appeals) in Appeal No. 287 reveals that demand of Service Tax
under category of “business auxiliary service” by similarly situated assessee,
GST LAW TIMES  2nd July 2020  160