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TMI Blog2022 (11) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... materials sold by the service provider to the service recipient, their value gets excluded from the taxable value and hence no service tax will be leviable on such goods. In respect of commercial coaching and training services, the materials in question will, obviously, be the study materials which the appellant has undisputedly provided. The documentary evidence of value of such materials is also not in dispute. The exemption notification is a delegated legislation made under the power of granting exemption available to the Central Government and not to anybody else, including the Central Board of Excise and Customs [CBEC]. Whenever any delegated legislation is framed, it is placed before both houses of the Parliament along with a note. Thereafter, the Committee on subordinate legislation of each house of the Parliament examines the notification so issued to ensure that it is consistent with the powers delegated by the law to the Government under the Act. The impugned order passed denying the benefit of exemption notification relying upon the CBEC Circular dated 20.06.2003 cannot be sustained as the CBEC has no power to modify the scope of the exemption notification No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r contravention of Sections 68, 69 and 70 of the Finance Act, 1994. After following due process, the Additional Commissioner issued order-in-original dated 30.08.2013 confirming the demand and interest as proposed but had not imposed penalties under Section 77 and 78 of the Act. Both Revenue and the assessee appealed against this order before the Commissioner (Appeals). While the assessee assailed the confirmation of the demand and interest, Revenue has assailed the non-imposition of penalty by the Additional Commissioner. The Commissioner (Appeals) by order dated 17.11.2015 [ i mpugned order] allowed Revenue s appeal and rejected the assessee s appeal upholding the demand of service tax and interest and further imposing a penalty of Rs. 5,89,698/- under Section 78 and a penalty of Rs. 10,000/- under Section 77 upon the assessee. The present appeal assails this order. 3. Shri Harsh Vardhan, learned Authorized Representative appearing for the Revenue has reiterated the findings of the impugned order. He further greatly assisted us in understanding the statutory provisions, the notification, the circular of the CBEC and the case laws on the issue. The short question which remains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said goods and materials. Provided that the said exemption shall apply only in such cases where (a) No credit of duty paid on such goods and materials sold, has been taken under the provisions of the Cenvat Credit Rules, 2004 ; or (b) Where such credit has been taken by the service provider on such goods and materials, such service provider has paid the amount equal to such credit availed before the sale of such goods and materials. 2. This notification shall come into force on the 1st day of July, 2003 . 5. It is evident from the exemption notification that the exemption was available from so much of the value of all the taxable services as is equal to the value of goods and materials sold by the service provider to the recipient of service subject to the condition that there is documentary proof specifically indicating value of the said goods and materials. The exemption notification does not place any restriction on the type of goods or materials which are entitled to the exemption. As long as there is documentary proof, indicating the value of the goods and materials sold by the service provider to the service recipient, their value gets excluded from the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s could be traced to Circular No. 59/8/2003-S.T., dated 20-6-2003. The relevant legislative provision and the exemption granted vide Notification No. 12/2003-S.T., dated 20-6-2003 admit of no ambiguity. It is the admitted factual scenario that the assessee had provided the taxable service of Commercial Training and Coaching qua Section 65(165)(zzc) read with Section 65(26) and (27) of the Act. Section 67 of the Act enjoins that the gross amount charged by the taxable service provider/assessee on the taxable service. Accordingly, the value of the books or course material supplied by the assessees to its students/trainees is required to be included in the value of the taxable service as the gross amount charged by the service provider. The assessee however relied on the Notification dated 20-6-2003, issued by the Central Government in purported exercise of its powers under Section 93(1) of the Act. Under this general exemption notification, the Central Government exempted so much of the value of all the taxable services, as is equal to the value of goods and material sold by the service provider to the recipient of service, from the Service Tax leviable thereon under Section 66 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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