2026 (7) TMI 523

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....d filed Service Tax Returns. On the basis of audit conducted by the Department, it was revealed that the appellant recovered amounts towards courseware, kits and study material supplied to students undergoing coaching programmes. Such study material was not independently marketed or sold to the general public. The appellant failed to produce any evidence showing separate sale of courseware independent of coaching services; separate invoices for sale of study material; separate VAT/Sales Tax treatment proving independent sale transactions. The courseware was supplied only to enrolled students and constituted an indispensable component of coaching services. Therefore, the value recovered towards courseware was intrinsically linked with provis....

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....ect of course material sold by the appellant separately to students, including students not enrolled with its coaching classes and also on account of fee-waiver/scholarships provided to students of the coaching centre. Being aggrieved, the appellant has preferred the present appeal. 3. Heard both the sides and perused the records of the case. 4. According to Shri Deepak Thackur, the learned Counsel for the appellant, the issues raised for determination of the Tribunal are as follows:- (i) Whether Service Tax is payable in course material sold by the appellant separately to students including students not enrolled with its coaching classes. More so, when separate invoices were issued for sale of study materials? [INR 13,89,03,....

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.... be added in the gross value. The appeal filed by the Revenue against the said decision has been dismissed by the Apex Court in the case of CCE & ST, Indore Vs. M/s. Cerebral Learning Solutions Pvt.Ltd. [2022 (12) TMI 475 (SC)] The said decision has been subsequently followed by the Tribunal in several cases and therefore, it is a settled position that the value of the course material, books/kits, which are billed separately cannot be added towards the taxable value of services. Once the issue has been decided in their own case that they have separate receipts for supply of books and study materials, indicating the price clearly, it has also been observed by the Tribunal that the appellant have sold such study materials or books to non-regi....