Separate sale of study material outside coaching service falls within exemption and is not liable to service tax.

Service tax was considered only on the value of study material sold separately to persons who did not attend coaching classes. The text states that, where no coaching service was rendered in relation to such sales, the value attributable to the study material fell within the applicable exemption notification and could not be subjected to service tax. It further notes that this position had already been accepted in earlier cases, and the demand on that component was therefore not sustainable.

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Issues: Whether service tax was leviable on the value of study material sold separately by the appellant to persons who did not attend coaching classes, and whether the benefit of the exemption notification applied.

Analysis: The dispute was confined to the consideration received for study material sold without any element of coaching service. The Tribunal noted that similar issues had already been decided in earlier cases, where the cost of study materials sold separately was held to be covered by the exemption notification. Since no coaching service was rendered in relation to such sales, the demand could not be sustained on that component.

Conclusion: The demand of service tax on the sale of study material was not sustainable and the issue was decided in favour of the appellant.

Ratio Decidendi: Where study material is sold separately without rendering the taxable coaching service, the value attributable to such sale is exempt under the applicable exemption notification and cannot be subjected to service tax.

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