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March 2012

(2012) 25 STR 24 (Tri.-Del.) — Fiitjee v. Commissioner of Sales Tax, Delhi.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 2 mins
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Valuation of study material for commercial training or coaching services — Appellant denied exemption claimed under Notification No. 12/2003 — Held that study material issued forms integral part of the coaching services — Notification No. 12/2003 relates to works contract — Commercial coaching cannot be brought under definition of works contract — Appellants were directed to make a pre-deposit of 13 lakh — Partial stay granted.

Facts:
The appellant provided commercial training or coaching services. Along with such services, a consideration for the study material issued to the enrolled students was also collected and claiming exemption under Notification No. 12/2003, no service tax was paid thereon. According to the Revenue, the study material is integral part of the coaching which becomes meaningful and complete only with the aid of such study material. They also pointed out the decision in Cerebral Learning Solutions Pvt. Ltd. v. CCE, (2009) 15 STR 343 (Tri.) wherein pre-deposit was ordered.

Held:
It was held that the issue of study material and the coaching services are inseparable. Also, no evidence brought to the notice of the authority to suggest that the study material could be sold as text books to the book sellers. At the same time holding that the exemption Notification relied upon by the appellant related to works contract and commercial coaching could not be called as works contract, the appellant was directed to make a pre-deposit of Rs.13 lakh.

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