St. Antony''s Educational and Charitable Society vs Union of India (UOI)

C.N. Ramachandran Nair, J.—Petitioner, a charitable society is running parallel college for coaching private students for writing various University examinations as well as computer courses for training students for "A" level and "O" level examinations conducted by the DOEACC society an organisation under the control of the Ministry of Communication and Information Technology, Government of India. The challenge is against the provisions of the Finance Act, 1994 authorising levy of service tax on the services rendered by "commercial training and coaching centres." Ext. P3 notice issued by the third respondent demanding registration and service tax is also under challenge. In the first place, being a parallel college petitioner is entitled to the benefit of the judgment in W.P.C. No. 728 of 2004 and connected cases disposed of today holding that no service tax can be demanded from parallel colleges as the demand is discriminatory and violative of Article 14 of the Constitution. Petitioner has produced Exts. P4 and P5 certificates issued by the DOEACC society under the Control of Govt. of India, Ministry of Communication and Information Technology, granting accreditation to it to conduct computer courses for coaching students to write for "A" level and "O" level certificate examinations which are conducted by DOEACC society. In the judgment in W.P.C. No. 728 of 2004 and connected cases referred to above. It was held that an educational institution conducting any course which is a requirement to write examination to obtain degree or certificate awarded by any agency created by law, is entitled to exemption under the definition Clause 65(27) of the Finance Act, 1994. Therefore, petitioner is not liable to pay any service tax, W.P.C. is accordingly allowed quashing Ext. P3 notice issued against the petitioner.