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TMI Blog2020 (2) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of commercial training or coaching service as bundled service? - HELD THAT:- Revenue has not brought forward any evidence that majority of service providers in the field of commercial coaching or training service provided hostel facility. In terms of the criteria stated in the manner of determining if the services are bundled as clarified by Central Board of Excise Customs it is not possible to bundle service of provisions of hostel facility with commercial training or coaching in the present case - the provisions of commercial training or coaching service and provisions of hostel cannot be bundled under the provisions of Section 66F of the Finance Act, 1994. Whether service tax was exempted on hostel facility? - HELD THAT:- The hostel facility is provided for less than ₹ 100/- per day and therefore, it is entitled for exemption under Notification No.31/2011 dated 25 April, 2011 and Serial No.18 of Notification No.25/2012-ST - confirmation of service tax on hostel charges set aside. Penalties - HELD THAT:- Since the demand on service provider do not sustain, the penalty on the other appellant does not sustain. We set aside penalties imposed on Shri Saurabh Singh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Section 66F of Finance Act, 1994 as bundled service for the period from 2012-13 to 2016-17 with computation of total consideration by appellant to be around ₹ 10 crores and with demand of service tax of ₹ 1,30,52,226/- with proposal for penalties and proposal for personal penalty on Shri Saurabh Singh, Director and the other appellant. The appellant submitted to the Original Authority that for the period of show cause notice, the service tax payable on account of collection of tuition fee for providing commercial training and coaching service workout to ₹ 45,70,670/- and the same was covered by around ₹ 72 lakhs paid by the appellant before issue of show cause notice and the same was paid along with interest and 15% penalty. The appellant further submitted that sale of books was not covered by service and that provision of hostel facility was not naturally bundled with provision of commercial training or coaching service. On 26 October, 2018 Order-in-Original was passed where demand of service tax of ₹ 1,30,52,226/- was confirmed and various penalties were imposed and Shri Saurabh Singh was imposed with penalty of ₹ 1 lakh. The said demand i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced Para 9.2.4 of the Taxation of Services: An Education Guide issued by Central Board of Excise Customs. The same is reproduced below:- 9.2.4 Manner of determining if the services are bundled in the ordinary course of business Whether services are bundled in the ordinary course of business would depend upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below:- The perception of the consumer or the service receiver, if large number of service receivers of such bundle of services reasonably expect such services to be provided as a package then such a package could be treated as naturally bundled in the ordinary course of business. Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines. The nature of the various services in a bundle of services will also help in determining whether the services are bundled in the ordinary course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to be sold to anybody on Flipkart. He has further submitted that the appellants issued independent invoices towards sale of books and the sale of books and forms was maintained separately in the books of account. He has relied on this Tribunal s decision in the case of Rubic s Rostrum Coaching Pvt. Ltd. V/s C.C.E. CUS., Lucknow reported as 2018 (10) G.S.T.L. 258 (Tri.-All.). He submitted that it was held in the said case that no service tax was payable on sale of books. He further submitted that hostel facility was independent activity and that it was not mandatory for every service recipient of commercial training or coaching service to avail hostel facility. He has submitted that they had submitted a list of students who did not availed hostel facility but availed the facility of training or coaching service. Further, he has submitted that they submitted a list of students who availed only hostel facility but did not received coaching service and therefore, it is clear that commercial training and coaching and availability of hostel are independent of each other and the receipt of the same are maintained separately in the books of account. Learned counsel for the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the sale of books appellant was earning 800% profit. The sale of books should be treated as part and parcel of commercial training or coaching service. 6. We have carefully gone through the record of the case and submissions made before us. The issues to be decided are as below:- (i) Whether sale of books is service. (ii) Whether provisions of hostel facility and sale of books are to be combined with provisions of commercial training or coaching service as bundled service. (iii) Whether service tax was exempted on hostel facility. We take issue one by one. (a). We note that it was not compulsory that books cannot be sold to any other person than the one who was receiving the commercial training or coaching service. We note that the books were published by M/s MKC Publication and were available on flipkart for purchase by anybody. We also note that separate invoice were issued for sale of books and cash receipts out of sale on books were separately maintained in the book of account. We do not appreciate the contention of the Revenue that the books are rendering 800% profit and therefore, the profits should be clubbed with provision of commercial training or coac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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