2011 (8) TMI 570

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..... tment, it was seen that during 1-4-2004 to  31-3-2006, they had supplied study material worth Rs. 81,63,505/- to their students but had not included the said amount for arriving at the value of services rendered by them for paying service tax. 2. The Department was of the view that the appellants could not have provided the coaching services without using the books which were sold to the students and the value of the said books recovered from the students should have formed part of the gross value of the services rendered by them and they should have paid tax on such gross value. The department accordingly issued a show cause notice demanding differential tax of Rs. 18,11,568/- along with interest and also for imposing penalties. .....

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..... vice, from the service tax leviable thereon under Section (66) of the said Act, subject to condition that there is documentary proof specifically indicating the value of the said goods and materials. This notification shall come into force on the 1st day of July, 2003." 5. It is the submission of the appellants that since they were selling books of another company, the value of the books were not to be added to the value of services which they were providing to the students. Their services were in respect of coaching for which they were billing separately and paying service tax on it. 6. The learned DR on the other hand, argues that the appellants were providing commercial coaching services and the said books containing the pro .....

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..... e above criteria will be subjected to service tax." 7. He submits that the books sold were not standard books. 8. At this stage, the learned Counsel for the appellants points out that the notification does not restrict the scope to sale of 'standard text books'. Scope of a notification issued by the Government of India cannot be restricted by circulars issued by CBEC. 8. We have considered arguments on both sides. It is not in dispute that the activity of the company is to provide coaching. The Revenue has not disputed the fact that the study materials were purchased by the appellants from M/s. Bulls Eye. Therefore, there is nothing in the Notification No. 12/2003-S.T. which would help Revenue in their arguments. The Circu .....

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