Appeal granted: Appellant exempt from service tax on study material.

The Tribunal allowed the appeal, setting aside the order confirming a demand of service tax against the appellant. The dispute centered on whether study material provided by the appellant should be included in the assessable value of taxable services. The Tribunal found that the appellant fulfilled the conditions of Notification No.12/2003 by separately indicating the value of the material supplied, thus qualifying for the exemption from service tax. Citing a previous Tribunal decision, the Tribunal concluded that the appellant was entitled to the benefit of the notification, leading to the appeal's success and disposal of cross objections.

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Issues:
1. Challenge to the order confirming a demand of service tax under the Finance Act, 1994.
2. Interpretation of Notification No.12/2003 regarding exemption from service tax for goods and materials sold by service providers.
3. Dispute over whether study material provided by the appellant is includible in the assessable value of taxable services.
4. Comparison with a previous Tribunal decision regarding the applicability of the exemption under Notification No.12/2003.

Analysis:
1. The appellant challenged the order confirming a demand of service tax amounting to Rs. 2,82,46,874 along with interest and penalties under Sections 76 and 78 of the Finance Act, 1994. The appellant, engaged in commercial training and coaching services, was investigated for not including the value of study material provided to students in the assessable value of services. The exemption under Notification No.12/2003 was contested, leading to the issuance of a show cause notice and subsequent confirmation of the demand.

2. The main contention revolved around the interpretation of Notification No.12/2003, which exempts the value of goods and materials sold by service providers from service tax, subject to specific conditions. The appellant argued that they fulfilled the conditions by separately indicating the value of material supplied in the invoice, hence claiming entitlement to the exemption. Reference was made to a Tribunal decision in a similar case where the benefit of the notification was allowed to the assessee.

3. The dispute over the inclusion of study material in the assessable value of taxable services was crucial. The appellant asserted that the study material was sold separately by a third party and not integral to the service provided, thus qualifying for the exemption under Notification No.12/2003. In contrast, the respondent contended that since the study material was provided as part of the service, its value should be included in the assessable value, disqualifying the appellant from the exemption.

4. Drawing parallels with a previous Tribunal decision in the case of Pinnacle, the Tribunal analyzed the applicability of the exemption under Notification No.12/2003. The Tribunal noted that the study material was purchased from a third party, similar to the situation in the previous case, leading to the conclusion that the appellant was entitled to the benefit of the notification. Consequently, the impugned order was set aside, and the appeal was allowed, with the cross objections disposed of accordingly.

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