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of <h1>Tribunal rules in favor of appellant, excludes textbook costs from taxable commercial training services.</h1> <h3>Commissioner of Customs, Central Excise & Service Tax, Guntur Versus Vignan Tutorials</h3> The Tribunal upheld the decision of the First Appellate Authority, ruling in favor of the appellant in a tax dispute regarding the taxability of amounts ... Valuation - Includibility - amount collected by the appellant towards the cost of text books and study materials or otherwise - Held that:- The appellant is conducting the service of “Commercial Training and Coaching” centre and the separate invoices are prepared for the services rendered for coaching and separate bill is prepared for the EAMCET textbooks. This issue is not disputed by the Revenue. On identical issue, the Bench of Tribunal in the case of Chate Coaching Classes Pvt. Ltd., [2012 (6) TMI 721 - CESTAT, MUMBAI] Pinnacle Vs. CCE [2011 (8) TMI 570 - CESTAT, NEW DELHI] and Cerebral Learning Solutions Pvt. Ltd., [2013 (4) TMI 527 - CESTAT NEW DELHI] has held that the cost of study materials and textbooks cannot be included in the value of the services rendered for commercial coaching and training centre. Appeal dismissed - decided against Revenue. Issues:Taxability of amount collected towards cost of textbooks and study materials in commercial training and coaching services.Analysis:The appeal was filed by the Revenue challenging Order-in-Appeal No. 05/2009 (G) (ST) dated 21.04.2009. The main issue revolved around the taxability of an amount collected by the appellant for textbooks and study materials. The appellant, a registered service provider under Commercial Training and Coaching services, had discharged tax liability for the period 2003-2004 to 2007-2008. The Revenue Authorities contended that amounts collected for study materials should be included in the value of service tax. A show cause notice was issued invoking the extended period due to non-inclusion of these amounts. The Adjudicating Authority confirmed the demand based on a board circular. However, the First Appellate Authority disagreed, stating that the board circular was not applicable in this case and set aside the Order-in-Original.Upon hearing both sides and examining the records, it was found that the appellant operated a 'Commercial Training and Coaching' center, issuing separate invoices for coaching services and EAMCET textbooks. The Revenue did not dispute this arrangement. It was clarified that the EAMCET textbooks were freely available in the market to individuals not enrolled in the coaching and training services. In light of similar precedents, including decisions in cases like Chate Coaching Classes Pvt. Ltd., Pinnacle Vs. CCE, and Cerebral Learning Solutions Pvt. Ltd., it was established that the cost of study materials and textbooks should not be included in the value of services provided by commercial coaching and training centers. Consequently, the Tribunal upheld the impugned order as correct and legal, citing consistency with previous decisions. The appeal by the Revenue was rejected.
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