The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax payable by Centre For Entrepreneurship Development, Madhya Pradesh for commercial training or coaching.
The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the appellant, Centre For Entrepreneurship Development, Madhya Pradesh is a State Government Undertaking and an entity set-up by the State Government and Central Financial Institutions and Lead Banks of the State. They have been set-up for the benefit of the weaker sections, who are below the poverty line and for the purposes of enabling them to earn livelihood and get gainful employment. The primary objectives of CEDMAP are ultimately directed towards entrepreneurship development. The funds for executing the programs are received from the respective State or Central Government or Departments and CEDMAP has been acting as an agency for the implementation of the said programs which is aimed at creating entrepreneurs, who would be self-employed and generate employment for others. Thus the service is not taxable.
The appellant, Centre For Entrepreneurship Development, Madhya Pradesh is engaged in teaching, resulting in issuance of BCA, DCA and PGDCA certificates. These courses are run in collaboration with Madhya Pradesh Bhoj (Open) University, which is recognized by the University Grants Commission and is in the list of accredited State Universities. These courses are run at subsidised cost for the benefit of the financially weak students, who are not able to afford to study these courses from non-government institutions.
In cases, where after the completion of courses, degree or diploma is awarded, which is recognised by law, service tax is not leviable in this regard, it is relevant to consider the Board Circular No. 59/8/2003-ST dated 20.06.2003.
The tribunal held that parallel colleges/educational institutions 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 Act and hence, they are not liable to pay any service tax.
Case Details
Case Title: Centre for Entrepreneurship Development Madhya Pradesh Versus Principal Commissioner
Case No.: Service Tax Miscellaneous Application No.50858 Of 2025 With Service Tax Appeal No.50242 Of 2021
Date: 14.10.2025
Counsel For Appellant: CA Sandeep Mukherjee
Counsel For Respondent: Anand Narayan, Authorised Representative
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