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December 2013

[2013] 38 taxmann.com 142 (Mumbai – CESTAT) I2IT (P.) Ltd. vs. CCE

By Puloma Dalal, Jayesh Gogri, Mandar Telang, Chartered Accountants
Reading Time 1 mins
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Whether mess charges and hostel fees, laptop charges are to be included in the value of ‘Commercial Training and Coaching Services’? Held, No.

Facts:
The appellant was engaged in imparting education to students enrolled with them for various courses in fields of management, engineering and information technology. Issue before the Tribunal was whether the appellant is liable to pay service tax on that part of the value including mess charges, hostel charges and payment for the laptops supplied to the students.

Held:
The Tribunal held that, these charges are not consideration received for the providing the service of commercial coaching or training. Mess charges and hostel fees are for providing boarding and lodging to the students and cannot be attributed to the training or coaching rendered. Similarly, the amount recovered for the supply of laptops also cannot be attributed to the services rendered (it relates to supply of goods) and therefore, these amounts collected towards mess charges, hostel charges and laptops are excludable from the taxable value of the service rendered.

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