Order Date – 18 May 2023

Parties: M/s. Kanhaiya Singh Vision Classes Private Limited Vs Commissioner of CGST & CX, Patna-I Commissionerate

Facts –

• The Appellant, M/s. Kanhaiya Singh Vision Classes Private Limited, is engaged in providing coaching services to the aspiring students for qualifying the competitive entrance examinations into the engineering/medical institutes.
• A show cause notice dated 24.09.2018 issued to the appellant alleging non/short payment of service tax on coaching services. It was also alleged that the Appellant is also liable to pay service tax on consideration received towards Publication Section L major being the income from sale of publication section L.

Issue – 

• Whether income from sale of publication of books has to be added in the consideration for coaching services provided by the Appellant?

Order –

• The Tribunal the issue is no longer res integra as the Tribunal in various decisions held that the value of books cannot be included in the consideration for coaching services.
• Since the value of sale of books is separately identifiable from the audited financial statements of the Appellant and there are documents to show that such sale was also made not to the students but to third parties also, the question of levy of service tax on such value from sale of books/publication cannot be sustained.