2017 (11) TMI 1276

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....n appellant (M/s Resonance Eduventures Pvt. Ltd.). The main appellant was in the business of providing commercial training or coaching to various candidates intending to take competitive entrance exam for professional courses. They are liable to pay service tax on such services. The dispute in the present appeals relates mainly to quantification of tax liability with reference to valuation where they have provided certain concession in the fees by way of their scholarship scheme. The main appellants published their programme of coaching to attract candidates. While doing the publicity, they have also announced a scholarship programme which basically works with reference to concession in percentage terms in the course fee. The scholarship is....

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....s extended by way of a percentage concession in the course fee which is otherwise normally fixed for all the candidates. Such concession is a bonafide business transaction which is pre-notified and is not influenced by any other relationship between the service provider and the service recipient. There is no element of non-monetary consideration attributable to such transaction. (b) the Original Authority referred to Rule 3 of the Valuation Rules presuming that there is a non-monetary consideration. When there is a declared policy available to any candidate fulfilling certain criteria the same cannot be considered as a transaction influencing the actual money payment. (c) the penalties imposed are also not sustainable in the facts and....