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TMI Blog2018 (6) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... under the category of ‘Commercial Coaching or Training Services' is the 80% of the amount paid by the students, as students make 100% of the payment directly in the name of M/s. Aptech Ltd. If that be so, appellant has correctly discharged the service tax liability on an amount received by him for the services rendered under the category of ‘Commercial Coaching or Training Services'. Appeal allowed - decided in favor of appellant. - ST/42285/2015 - FINAL ORDER No. 41770 /2018 - Dated:- 6-6-2018 - Shri MADHU MOHAN DAMODHAR (Member Technical) and Shri P. DINESHA, Member (Judicial) Shri B. Ramana Kumar, Advocate, for the appellant Shri K.P. Muralidharan, AC (AR) for the Respondent. ORDER Per Madhu Mohan Damodhar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer 20% of such amount collected along with service tax component thereon to M/s. Aptech; that on the remaining 80% they discharged the service tax liability. b) Accordingly, the gross income for the appellants would be only 80% of the total amount collected from the students and hence service tax is required to be discharged only on this quantum. c) Ld. Advocate submits a copy of their account for the year end 31.03.2007 to reinforce his argument that 20% of the gross collection made from the students have been paid to M/s. Aptech as royalty/franchisee fee. d) Ld. Advocate also submits a copy of the declaration dated 20.04.2009 by M/s. Aptech wherein they have confirmed that in terms of the agreement with the appellant the late ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the fact that the students issue the cheques for the payment of fees in the name of M/s. Aptech Ltd. It is on record that appellant is not receiving any amount from the students directly. The provisions of Section 67 of the Finance Act, 1994 envisage for considering the gross value for discharge of service tax liability. The said section specifically provides that the gross value which is charged for the services has to be considered for payment of service tax liability. In the case in hand, the amount received by the appellant for the provision of services under the category of Commercial Coaching or Training Services‟ is the 80% of the amount paid by the students, as students make 100% of the payment directly in the name of M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the franchise agreement. Under the terms of the agreement, the course fee is collected in the name of Arena Multimedia and is credited into the escrow account of Aptech Ltd. The authorized representative of Aptech Ltd. is required under the terms of the franchise agreement to disburse the course fee credited into the escrow account between Aptech Ltd. and the appellant, in the proportion agreed to between the parties under the said agreement. Accordingly, the appellant received 80% of the course fee and 20% by Aptech Ltd., as its royalty under the franchise agreement. 8. In the factual scenario as is clear from the transactional instrument namely, the franchise agreement dated 14.1.2005 it is clear that the consideration received by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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