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TMI Blog2017 (3) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered with the department and were discharging the service tax they chose to pay service tax only on part of the value received by them. The claim for bonafide belief is not tenable in the facts and circumstances of the present case. Accordingly, no merits found in the plea of the appellant assessee on this account. Appeal allowed - decided in favor of Revenue. - ST/1063 & 1026/2011-ST[DB] - Final Order No. 50306-50307/2017 - Dated:- 12-1-2017 - Mr. S.K. Mohanty, Member (Judicial) and Mr. B. Ravichandran, Member (Technical) Mr. Manish Gaur (Advocate) for the Appellant Mrs. Neha Garg, DR for the Respondent ORDER These two appeals are against a common impugned order dated 30.03.2011 issued by Commissioner of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and perused the records. 4. The Ld. Counsel for the appellant/ assessee submitted that the appellant/ assessee are providing commercial coaching or training service in terms of composite contract with the participant, and as such, no service tax can be levied. The tax liability can only be on service. In terms of Section 65(105)(zzc), the activities taxed in only service. Since, the appellant assessee provided service along with supply of material, they are not liable to service tax. Reliance Was placed on the decision of Hon'ble Supreme Court in the case of Larsen and Toubro Ltd. 215 (39) STR 913 (SC). The Ld. Counsel further submitted that when the Rules did not provide any mechanism to determine the value of service in such co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned above. 8. We take up the question of eligibility of the appellant/ assessee for the exemption under Notification 12/2003-ST. 9. The said Notification exempts service tax on the value of goods and materials sold by the service provider to the service recipient, subject to condition that there is documentary proof specifically indicating the value of the said goods and materials. 10. The dispute in the present case is with reference to the documentary proof to claim the said exemption. The Ld. Commissioner recorded that audited balance-sheet, ledger accounts and documents related to actual cost attributable to blazer, uniform etc. can be considered for extending the benefit under the said Notification. We find that such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee to support their claim for exemption under Notification 12/2003-ST. As already noted the wordings and the conditions of the Notification are very clear and there is no ambiguity on this count. We note that in the absence of documentary proof of sale of goods or materials, the exemption claim cannot be admitted. 12. We note that the appellant assessee relied on the decision of Hon'ble Supreme Court in Larsen and Toubro (supra) to contest the service tax liability itself on the services of commercial coaching or training rendered by them. It is their claim that the contract is of composite nature and hence, cannot be taxed under Finance Act, 1984. We find that the said submission is legally unsustainable. First of all, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the impugned order extending the said benefit is set aside. 13. Regarding the service tax of franchisee service, we note that the issue has been examined in detail by the original authority. On careful analysis of the data submitted by the appellant as well as the evidences collected during investigation, the impugned order arrived at the differential service tax to be paid on this account by the appellant assessee. We find no reason to interfere with the said finding. Regarding the demand for extended period, the Ld. Counsel for the appellant assessee claimed bonafide belief for exclusion of cost of goods supplied by them. We find that the original authority recorded his reasons for extended period and for imposition of penalty unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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