2018 (6) TMI 1796 - AT - Service Tax

Valuation of taxable service - Commercial Training Coaching Services - inclusion of value of the course material/book supplied separately by the appellant in the value of services - exemption under N/N. 12/2003-ST dated 20/06/2003 - HELD THAT - The issue stands decided in their own case in M/S. FITTJEE LIMITED VERSUS CST, NEW DELHI 2017 (1) TMI 1602 - CESTAT, NEW DELHI , which further stands followed in their subsequent appeals, where it was held that there is no question of their availing any Cenvat credit on such books and study materials as there is no tax paid on any of them. We find the impugned order denying the benefit of Notification No.12/03-ST is not legally sustainable. Appeal allowed - the matter is decided in favour of the assessee.

Summary

Issues involved:
Valuation of taxable service under "Commercial Training & Coaching Services" - Exemption under Notification No.12/2003-ST for sale value of course material/books.

Analysis:

The judgment revolves around the issue of the valuation of taxable services under the category of "Commercial Training & Coaching Services." The appellant had a dispute regarding the inclusion of the value of course material/books supplied separately in the taxable service value. The Lower Authorities had denied the exemption under Notification No.12/2003-ST, which exempts service tax on the component of the sale value of such materials.

Both parties agreed that a similar issue had been decided in their favor in a previous case, Fiitjee Ltd. The Tribunal in that case had considered the appellant's separate receipts for the supply of books and study materials, indicating prices clearly. The Tribunal also noted that the appellant had sold these materials to non-registered students, and their prospectus mentioned the prices of these materials. Based on these facts, the Tribunal concluded that the appellant's claim for exemption under Notification No.12/2003-ST could not be rejected. The Tribunal also highlighted that the appellant did not avail Cenvat credit on these materials as no tax was paid on them. The Tribunal referred to previous decisions in similar cases to support its decision.

Ultimately, the Tribunal decided in favor of the assessee, setting aside the impugned order and allowing the appeal with consequential relief to the appellant. The judgment provides a clear interpretation of the relevant provisions and exemptions under the service tax law, ensuring that the appellant is not unfairly burdened with additional tax liabilities for the sale value of course material/books supplied in the context of commercial training and coaching services.