2008 (3) TMI 84 - AT - Service Tax

Appellant is rendering Commercial Training services; claim to have published certain books/study materials and supplied them to their trainees & outsiders also - if the books are sold to any non-recipient of services of commercial training & coaching services then it will be only a case of sale of books & question of Service Tax does not arise exemption u/snot. 12/03 is available subjected to evidence of sale is produced evidence produced only before tribunal matter remanded

Summary

Issues:
1. Exemption under Notification No. 12/2003-ST for 'Commercial Training or Coaching' services.
2. Denial of exemption by the Original Authority and upheld by the Commissioner (Appeals).
3. Evidence of sale of books/study materials produced for the first time before the Tribunal.
4. Remand of the matter to the Original Authority for fresh consideration.

Analysis:
The appellant, engaged in providing 'Commercial Training or Coaching' services, claimed exemption under Notification No. 12/2003-ST for supplying books/study materials to trainees and outsiders. The Original Authority and the Commissioner (Appeals) denied the exemption, alleging suppression of the books' true value. The appellant argued that sales to non-trainees constitute book sales, not subject to Service Tax, while materials supplied to trainees are invoiced for exemption eligibility.

During the Tribunal proceedings, the appellant presented evidence of book/study material sales for the first time, unconsidered by prior authorities. Recognizing this, the Tribunal decided to set aside previous orders and remand the case to the Original Authority for a fresh review of the evidence. The appellant was granted two months to submit written permission and evidence, with the Original Authority instructed to provide a fair hearing and keep all issues open for consideration.

Ultimately, the Tribunal allowed the appeal through remand, emphasizing the importance of considering newly presented evidence and ensuring a comprehensive review by the Original Authority. The decision aimed to uphold procedural fairness and thorough examination of the case, highlighting the significance of proper evidence consideration in tax exemption disputes.

This judgment underscores the procedural diligence required in tax matters, emphasizing the need for a fair assessment of evidence and the importance of allowing parties the opportunity to present relevant information for a just resolution.