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March 2013

The value of study materials is excludible from the value under the taxable category of “commercial Training and Coaching services” in terms of Notification No.12/2003-ST.

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
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Facts

The Appellant engaged in providing the services of commercial training and coaching discharged service tax after excluding the value of study materials supplied to the students as per Notification No.12/2003. Based on CBEC Circular No. 59/8/2003 dated 20-6- 2003, Revenue contended that the exemption was available only to standard textbooks and not to the study material supplied as part of the service.

Held

Though the word “standard textbook” was used in CBEC Circular, the same was not used in the Notification No.12/2003. Also, the department did not dispute the fact of supply of study materials to students and documentary evidence for the same and thus satisfying all the conditions of 12/2003-ST. Held that there was no merit in the contention of the Respondent as the said notification has not used the word “standard textbook” and the books sold are of another entity and hence the appeal was allowed.

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