2009 (2) TMI 702 - AT - Service Tax

Valuation - value of service in relation to coaching - price of study material - includibility - Notification No. 12/2003-S.T., dated 20-6-2003

Summary

Issues:
1. Whether the price of study material should be excluded from the value of coaching service for taxation purposes.
2. Whether the appellant is entitled to waiver of pre-deposit based on the specific circumstances of the case.

Analysis:

Issue 1:
The appellant argued that the study material sold should be excluded from the value of coaching services provided, citing Notification No. 12/2003-S.T. The Tribunal noted that the appellant is engaged in providing commercial coaching but failed to establish that the study material sold were not essential only to those taking coaching. Without specific evidence, the Tribunal could not rule in favor of the appellant for waiver of pre-deposit. The Tribunal emphasized that each case is decided based on its individual facts and circumstances. Referring to the decision in the case of Benara Valves, the Tribunal directed the appellant to make a pre-deposit of Rs. 3 lakhs during the appeal's pendency.

Issue 2:
The Authorized Representative for the appellant argued for a waiver of pre-deposit, drawing parallels with a previous Tribunal decision. On the other hand, the Learned DR supported the orders of the authorities below. After hearing both sides, the Tribunal found that the appellant did not provide sufficient evidence to support the exclusion of study material prices from the consideration received for commercial coaching services. Therefore, the Tribunal ruled against granting a waiver of pre-deposit. The Tribunal specified a deadline for the appellant to make the required deposit and stated that upon compliance, the realization of the remaining amount would be stayed.

This judgment highlights the importance of providing specific evidence to support claims in tax-related matters and emphasizes that decisions are made based on the unique circumstances of each case. The ruling also underscores the significance of compliance with directives issued by the Tribunal regarding pre-deposits during the appeal process.