2017 (2) TMI 1370 - AT - Service Tax

Liability of tax - amount collected towards supply of study material/ kit from the candidates - Commercial Training and Coaching Services - benefit of N/N. 12/03-ST dated 20.06.2003 but was not allowed on the ground that they have provided a composite service of coaching and the study materials which are essential part for the service rendered - Held that - The identical issue has come up in the assessee s own case M/s. Fittjee Limited Versus CST New Delhi 2017 (1) TMI 1602 - CESTAT NEW DELHI where it was held that Appellants have separate receipt for supply of books and study materials indicating the price clearly. They have sold such study materials /books to non-registered students thus the benefit cannot be denied. Benefit of Notification allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Tax liability on amount collected for supply of study material/kit in coaching services.
2. Claim for exemption under Notification No. 12/03-ST.
3. Composite service of coaching and study materials.
4. Legal sustainability of denying exemption under Notification No. 12/03-ST.

Analysis:
The appeal was filed against an order passed by the Commissioner (Appeals) Central Excise, New Delhi, regarding the tax liability concerning the amount collected for supplying study material/kit in coaching services. The appellants provided coaching for entrance examinations and were registered for paying service tax under "Commercial Training and Coaching Services." The dispute revolved around the exemption claim under Notification No. 12/03-ST, which was rejected by lower authorities, considering the study materials as an essential part of the coaching service. The department brought the service under the service tax net, leading to the appeal by the appellant.

During the hearing, the appellant's advocate and the revenue's representative presented their arguments. The Tribunal referred to a previous case (ST/Appeal No. 1355 of 2010) where it was observed that the appellant had separate receipts for study materials, indicating prices clearly, and had sold these materials to non-registered students. The Tribunal found that the appellant's claim for exemption under Notification No. 12/03-ST was valid, as they were not availing any cenvat credit on the study materials. The Tribunal also cited similar decisions in support of granting the exemption.

Based on the previous order and findings, the Tribunal found no merit in the impugned order and set it aside. Consequently, the appeal filed by the appellant was allowed, providing consequential relief. The decision was dictated and pronounced in open court by the President and Member (Technical) of the Appellate Tribunal CESTAT New Delhi.