By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
fiogf49gjkf0d
Whether training given relating to various procedures and statutory compliances to be made in relation to export of goods can qualify as “vocational training” and exempt under Notification No. 24/2004-S.T.? Held, Prima facie, Yes
Facts:
The Appellants are providing training relating to various procedures and statutory compliances to be made in relation to export of goods and claimed exemption vide Notification No. 24/2004-S.T. contending it would qualify to be “vocational training.” For this, the Appellants relied on the following decisions:
• Ashu Export Promoters (P) Ltd. v. CST [2012] 34 STT 47 (New Delhi- CESTAT )
• Wigan & Leigh College (India) Ltd. v. Jt. CST [2008] 12 STT 157 (Bang. – CESTAT )
Revenue argued that “vocational training” would only cover courses with specific syllabus and approved by Government and hence sought to tax Appellants’ activity under the category of “commercial training and coaching” for the period 01-04-2004 to 31-03-2009.
Held:
The Hon’ble Tribunal gave a prima facie view that, the decisions relied upon by the Appellant will apply to the training impugned in this case also and granted waiver and stayed collection of all the dues arising from the impugned order.
Note: In Ashu Exports Promoter’s case, Appellant was engaged in the activity of imparting training in the field of export-import, merchandising and retail management. The Hon’ble Tribunal while considering dictionary meaning of the term ‘vocational’ held that it means “relating to an occupation or employment”. Further, in relation to education and training it gives the meaning “directed at a particular occupation or its skill.” The Tribunal held that when engagement in occupation or employment becomes outcome of vocational training pedantic approach as that is made out by Revenue by restricting its meaning is undesirable.
