2019 (1) TMI 1653 - AT - Service Tax

Valuation - concession given in the tuition fees to some students, as per pre-declared policy - whether the said amount is includible in the value of taxable turnover, for payment of Service Tax? - HELD THAT - The issue is covered by appellant ow case 2017 (4) TMI 1338 - CESTAT NEW DELHI where it was held that the tuition fees actually charged by the appellant, after providing eligible discount/rebate, will only be considered as the gross value for payment of service tax - appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether concession in tuition fees to students should be included in the taxable turnover for Service Tax payment.

Analysis:
The appellate tribunal, consisting of Hon'ble Shri Anil Choudhary and Hon'ble Shri Bijay Kumar, addressed the issue of including concession in tuition fees to students in the taxable turnover for Service Tax payment. The appellant's advocate, Shri Rachit Jain, and the respondent's representative, Shri Vivek Pandey, presented their arguments. The tribunal referred to a precedent order in the appellant's own case, Final Order No. 58795/2017 dated 19th April, 2017, where it was established that the appellant provided concessions to meritorious students based on academic performance and economic status. The tribunal noted that the appellant's practice of offering discounts/rebates to students was a common trade practice and did not aim to create brand name or goodwill through such concessions. The names and photos of successful candidates were published in advertisements based on entrance examination results, and the tuition fees charged after providing eligible discounts/rebates were considered as the gross value for service tax payment. Therefore, the tribunal found no merit in the impugned order and allowed the appeal in favor of the appellant, setting aside the previous decision.

In conclusion, the tribunal, following the precedent judgment in the appellant's case, allowed the appeal and set aside the impugned order. The decision was dictated and pronounced in the open court, providing clarity on the treatment of concessions in tuition fees for service tax purposes based on established trade practices and previous rulings.