Exemption for separately sold study material with coaching services upheld where materials were not inseparable from the service.

Separate billing and identifiable pricing for study material, books and kits supplied with coaching services supported exemption under Notification No. 12/03-ST dated 20.06.2003, because the materials were not shown to be inseparable from the coaching service. The record also indicated sales to non-registered students and prospectus entries showing the price of the materials, and no Cenvat credit had been availed on them. On these facts, the denial of exemption was unsustainable, and the benefit of the notification was available to the appellant.

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Issues: Whether the appellant was entitled to exemption under Notification No. 12/03-ST dated 20.06.2003 in respect of the amount collected towards supply of study material, books and kit along with coaching services.

Analysis: The appellant provided coaching services and separately billed and sold study materials and books. The record showed separate receipts with identifiable prices, sales to non-registered students, and prospectus entries indicating the price of books and study material. On these facts, the supply of study material could not be treated as inseparable from the coaching service so as to deny the benefit of the notification. It was also noted that no Cenvat credit had been availed on such materials.

Conclusion: The appellant was entitled to the benefit of Notification No. 12/03-ST dated 20.06.2003, and the denial of exemption was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed.

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