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TMI Blog2016 (12) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... sed their turnover and maintained proper records which could not have been rejected on account of some variation noticed with the statement recorded by the partners of the appellant, their employees and students. 2. The brief facts are that on inspection took place in the premises of the appellant on 09-09-2010. In the said inspection some records were resumed for further verification and statements were also recorded under section 14 of the Central Excise Act, 1994. The statement of partner, Mr. Rajneesh Singh, was recorded along with the statement of Mr. Durgesh Srivastava, the marketing executive, who was working for the last 12 months. As per the statement of Mr. Rajneeesh Singh, who was shown 20 fee receipts issued during April, 2009 to December, 2009 and asked to explain the entries of any of them, but he could not explain. Further, in his next statement on 11-2-2011 he stated in response to question number 18 that during the current financial year 2010-11, total number of students is approximately 649. He also stated year-wise fee structure for the period 2008-09, 2009-10 & 2010-11 for the various courses conducted by them namely, Target Batch, Vision Batch, Focus Batch, AI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eared that for the Financial Year 2009-10, all the receipts are not properly recorded. Accordingly, it appeared to Revenue that the turnover shown or the gross receipt shown, was not credible and was liable to be rejected and the accounts maintained by the appellant are not reliable. Further, the fee receipt books resumed at the time of search were found incomplete only for the year 2009-10. As such, to ascertain the exact number of students from fee receipt, list containing the name of students in alphabetical order was prepared and it was found that number of students as per their fee receipt was 810 as detailed in Annexure (J) to the Show Cause Notice. For the year 2008-09 the average numbers of students as stated by partner Praveen Kumar Singh, in his statement dated 22-02-2011 was 617. Accordingly, as per the statement, 649 students were taken for the period 2010-11. The fee structure is stated by Mr. Rajneesh Singh for the respective years in answer to Question No. 18 in the statement dated 11-02-2011, was taken into consideration while calculating the taxable value of the services. Accordingly, the Revenue proposed to reject the Books of Accounts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f issue of Identity Card to the students. It has been stated that they also conduct free classes. Students do not come in one lot. Some students come to attend/or avail free classes and thereafter some students take admission. Further, the admitted and free students are given classes together. This continues during the first 2 to 3 months of the new session. Thereafter, on the basis of fee receipts, Identity Cards were issued. In answer to Question No. 8 wherein it was asked about the details of enrolled students in each year batch wise/course wise, wherein he stated as follows: - Period IIT (Target) +AIEEE PMT Target Focus Vision 2008-09 (425 - 450) - (80 - 100) (80 - 100) 2009-10 (450 - 500) - (80 - 100) (80 - 100) 2010-11 (400 - 450) 45 50 (60 - 80) (100 - 120) It was also stated that figure stated above is as per his memory which is approx and is not exact figure. 4. He further stated that this is approx data and also stated that as per the actual receipts, record in Books of Account are maintained and returns were filed with the Service Tax Department. He, further, states that Service tax returns are filed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the receipt batch wise, course wise, number of students for a particular financial year, how would you tell. It was answered that they may not be able to tell batch wise/course wise number of students. But total number of students and the gross fee received, which will be as per the records maintained by them. Further, in Question No. 27, query was made that as per the fee receipts of students starting with the Page 36, students were randomly selected and as per the receipt book, from 21 students fee collected is Rs. 3,000/- to 5000/-, from 10 students Rs. 5,000/- to 10,000/- from 3 students Rs. 10,000/ to 20,000/- & from 2 students Rs. 20,000/-. Thus the average comes to Rs. 7,340/- per student which does not match with the fee structure of the appellant and a doubt was raised on the records maintained by the appellant. In answer, the partner stated that whatever be the fee structure they have kept; they usually do not get the said amount and whatever they get they maintain proper records. 5. The ld. Counsel also draws our attention to the statement of the Marketing Executive, Shri Durgesh Srivastava, recorded on the date of search wherein he has stated that they are properly reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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