2012 (4) TMI 581

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.... were also running three public schools up to Class-VIII and one school up to Class-XII affiliated with Rajasthan Board. 2. Further the appellants had authorized others to conduct coaching classes using study material prepared by them and using their name and thus acting as franchisers and getting payments from some franchisees. They were not paying service tax on amounts collected as royalty amount from their franchisees either. 3. They were registered with service tax authorities and paying service tax under the head for Commercial Coaching and Training. But it was found by Revenue that they were not paying service tax on the full amounts received from students but were only paying tax on part of the amounts received. Revenue took t....

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....terial sold in the case of Chate Coaching Classes Pvt. Ltd vs. CCE as reported at. They submit that the material sold by them are priced publications with MRP printed on it and the books are available for the public for purchase at the MRP price from some of the book-shops. They submit that proof of costs of printing of these study materials and test papers for the concerned years amounting to about Rs. 3.38 crores was placed before the adjudicating authority. They contend that the value of such study material sold cannot be considered as the value of service provided, especially because of specific exemption provided for goods sold in the course of providing service by Notification 12/2003-ST. 7. In respect of franchise services the app....