9911796707
TMI Blog2017 (3) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... nd further penalties under Section 76 and 77 of Finance Act, 1994. The appellant assessee filed appeal against the said order. The Revenue also filed appeal against the finding of the Commissioner with reference to non-inclusion of certain income in the taxable value. 2. The brief facts of the case are that the appellant assessee is providing commercial coaching for pre-medical test and engineering entrance. The services rendered were taxed under the category of commercial training or coaching service. For the period April, 2004 to September, 2008, the service tax liability on the appellant assessee under the above mentioned taxable category was sought to be recovered on the differential amount between the income shown in ST-3 Return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under Notification 12/2003-ST dated 20.03.2003. Though, the appellant assessee did not have documents evidencing sale of goods during the course of providing service, the service tax levy cannot extent to sale of goods. 5. Ld. Counsel also contested the impugned order on the question of time bar. The service tax demand made under franchisee service is also contested on the ground that the appellant assessee discontinued the franchisee business and there is no receipt of earned income during the period 2007-2008. 6. The Ld. AR submitted that the impugned order is incorrect in allowing the deduction in the value of taxable service with reference to supply of blazer, uniform, bags etc. It is submitted that there is no evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld by the service provider to the service recipient is exempted. The Condition is production of documentary proof. We note that the cost of procurement of any of these items, even if they are evidenced by supporting documents, is of no relevance as the exemption is only for goods and materials sold by the appellant assessee to the service recipient. No such evidence of sale has been produced. Further, such sale should be from the appellant/ assessee to the recipient of service. Procurement of Various goods and materials and their cost being reflected in the balance-sheet is not a sufficient documentary proof to fulfil the condition of the Notification. We find that the reasoning adopted by the original authority is legally untenable. 11. & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is an agreement for providing service and supply of goods. Various individuals approach the appellant/ assessee for commercial training or coaching. Admittedly, the appellant assessee is engaged in providing such taxable service to various participants. During the provision of such service, certain study materials etc, were used. Legislative competence to tax such services which may involve certain supply of materials has been examined by Hon'ble Delhi High Court in Federation of Hotels and Restaurants Association of India 2016 (44) STR 3 (Del.). The Hon'ble Delhi High Court also examined machinery provision for the levy and determination of service tax on the service portion as clearly spelt out in the Rules. In the present case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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