Service Tax
TRT-2025-
Cestat New Delhi
Date:-10-11-22
In:-
Issue Favourable to Tax Payer ?:-
Order Date: 10 November 2022
Facts:
- The appellant, M/s Lakshya Education Solutions Pvt. Ltd. provided commercial training and coaching to students appearing in IIT (JEE)/AIEEE exams.
- The appellant paid service tax only on the amount which it charged for coaching and had not paid service tax on the cost of study materials provided by it.
- A show cause notice dated 12.03.2013 was issued to the appellant demanding service tax
- Aggrieved by the subsequent Orders, this appeal is filed.
Issue:
- Whether exemption Notification No. 12/2003-ST dated 20.06.2003 was available to the appellant for study materials ?
Order:
- The Tribunal observed that 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.
- Further, it was observed that the reason due to which exemption notification was denied to the appellant was that the CBEC circular had restricted the entitlement of this exemption notification to only such materials as constituted standard text books which have a maximum retail price printed on them. However, it was held that circular by the CBEC cannot modify the scope of the exemption notification. It has also been held so by this Tribunal in the case of M/s Cerebral Learning Solutions Pvt. Ltd. versus CCE, Indore.
- The appeal was allowed.
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