Only standard text books sold eligible were for ST exemption, not study materials provided as a part of service

PrintPDF

CESTAT, NEW DELHI BENCH

Soni Classes

v.

Commissioner of Central Excise, Jaipur-I

FINAL ORDER NO. ST/A/597/2012-CUS

APPEAL NO. ST/670 OF 2011

SEPTEMBER 20, 2012

 

Notification No. 12/2003-ST dated 20-6-2003 excludes the value of the goods and materials sold by the service provider to the recipient of service, from the value of the taxable services. The said exclusion is subject to the condition that there is documentary proof specifically indicating the value of the said goods and materials. Board’s Circular No. 59/8/2003-ST dated 20-6-2003 clarifies that the exemption to that extent would be available only in cases where the sale of such goods is evidenced and the sale value is quantified and shown separately in the invoices. It is also clarified that in case of commercial training and coaching institute, the exclusion shall apply only to the sale value of standard text books, which are priced and any study material or written text provided by such institute as a part of the service which does not satisfy the above criteria will be subjected to service tax.

Providing study materials, test papers etc. is a part of coaching services and is required to be included in the value. It is only the extra text books or extra material which is admittedly being sold to the students and is also available for sale to outsiders and students or procured from the outside and sold to the candidates, which will not form part of the taxable coaching services.