2018 (1) TMI 1343 - 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 the said study materials are essential part of coaching service and cannot be abated from the taxable value - Held that - The identical issue has come up in the assessee s own case M/s. Fittjee Limited Versus CST New Delhi 2017 (2) TMI 1370 - 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: Valuation of taxable service under Commercial Training and Coaching services

Analysis:
The judgment involves an appeal by both the revenue and the assessee against a common impugned order regarding the valuation of taxable service under Commercial Training and Coaching services. The dispute revolves around whether the sale value of course materials/books sold by the assessee during the provision of services should be included in the taxable value for Service Tax calculation. The assessee claimed exemption under Notification No. 12/2003 ST dated 20/06/2003 for the sale value of study materials, while the Original Authority disallowed the claim, stating that the study materials are an essential part of the coaching service and cannot be abated from the taxable value.

The Tribunal referred to a previous case involving the same appellant where a similar issue was addressed. In that case, the Tribunal observed that the appellant had separate receipts for the supply of books and 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 there was no tax paid on the books and study materials, and the denial of the benefit of the notification was not legally sustainable. The Tribunal also cited decisions in other cases to support its conclusion.

Based on the precedent set in the earlier case and the factual scenario presented, the Tribunal found in favor of the appellant in the current dispute. The impugned order disallowing the exemption claim was set aside, and the assessee's appeal was allowed. Consequently, the revenue's appeal was dismissed. The judgment highlights the importance of factual evidence and legal precedents in determining the applicability of exemptions under relevant notifications in Service Tax matters.