Separately priced study materials supplied with coaching services can be excluded from taxable value when no Cenvat credit is taken.

Study materials separately priced and separately supplied in connection with commercial coaching services were held excludible from taxable value under Notification No. 12/2003. The Tribunal followed the assessee's earlier case, noting that the materials were also sold to non-enrolled students, the prospectus separately disclosed their price, and no Cenvat credit had been taken on those materials. On those facts, the exemption could not be denied and the exclusion of the value of study materials from tax was sustained; the Revenue's challenge failed.

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Issues: Whether the value of study materials supplied to students pursuing commercial coaching and training could be excluded from the taxable value by claiming the benefit of Notification No. 12/2003 dated 20.06.2003.

Analysis: The Tribunal noted that the dispute was covered by an earlier decision in the assessee's own case. It followed the earlier reasoning that where separate consideration was charged for books and study materials, the materials were also sold to non-enrolled students, and the prospectus separately indicated their price, the claim for exemption could not be denied. The Tribunal further noted that there was no availment of Cenvat credit on such materials.

Conclusion: The exclusion of the value of study materials from the taxable value was upheld and the benefit of the notification was available to the assessee.

Final Conclusion: The Revenue's challenge failed and the impugned order was sustained.

Ratio Decidendi: Where study materials are separately priced and separately supplied in connection with coaching services, and no Cenvat credit is taken on them, their value is excludible under the relevant exemption notification.

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