- (1.) The tax authorities informed the petitioner that in view of provisions of the Finance Act, 1994, Section 65(27) his commercial training centre (a motor training school) would be covered for payment of service tax. After giving such decision the competent authority initiated the requisite proceeding by issuing summons under the Central Excise Act, 1944, Section 14. At such stage this writ petition has been taken out.
(2.) According to the petitioner, for the motor training school run by him no service tax is payable, because his school that issues a certificate recognised by law in force will stand excluded in view of provisions of the same Section 65(27), which is : "(27) "Commercial training or coaching centre" means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons of any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational gratification recognised by law for the time being in force;"
(3.) The undisputed facts are these. The petitioner runs a school for imparting instructions in driving of motor vehicles; and for that purpose he has obtained licence in terms of provisions of the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989. In view of provisions of the said Act, Sections 9 and 12, and Rules 14 and 27, his school issues a certificate in prescribed form to a person who is trained by it; and the holder of such certificate can use it for making application for driving licence. While, in view of provisions of Section 9(4) of the said Act, an application for licence to drive a transport vehicle must be accompanied by it, is not so in other cases.;