TMI Blog2013 (1) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... ame premises – Entire receipts are being divided into two parts Whether M/s Soni Patrachar was independently selling the books to their students or whether the same was created on paper and the total consideration received for providing coaching services by M/s Soni Classes was being artificially bifurcated, so as to avoid payment of service tax Held that:- The bills was not able to produce any literature issued to the public or the invoices issued for enrolling the candidates. There is no material on record to show that M/s Soni Patrachar was an independent proprietary firm. On the other hand, a lot of evidence appears on record to reflect upon one fact that though the value of coaching classes being provided by M/s Soni Classes to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Excise officers on 12.2.2007 and various records maintained by them were put to scrutiny. As a result it was found that Shri Udhav Lal Soni was proprietor of M/s Soni Classes whereas his wife Mrs. Prem Lata Soni was running another proprietary firm under the name of M/s Soni Patrachar Institute. The said proprietary unit M/s Soni Patrachar Institute was also running from the same premises. Two types of bills were being issued one for training and coaching classes run by M/s Soni Classes and the other as a consideration for providing study material to the students, by M/s Soni Patrachar. 3. Statement of Shri Udhav Lal Soni was recorded on 12.2.2003 wherein he, inter alia, deposed that M/s Soni Classes as also M/s Soni Patrachar are bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t teachers. Tests are conducted periodically. They purchased detailed study material from the market and provided to the students so that similarity may be maintained during the teaching, for example they purchased test book of Ray Publication' for the RPSC students in the year 2006. He further submitted that they have not kept any separate purchase bills of text books etc. The consolidated income received by them is divided into two parts i.e. in the name of Soni Patrachar as also in the name of Soni Classes. The amounts charged from the students is inclusive of all and no separate receipts are given to the students. He also disclosed the total consolidated amount charged from the students and division of the same between M/s Soni Cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold by M/s Soni Patrachar Institute is not required to be added in the value of coaching services being provided by M/s Soni Classes. They have also assailed the demand on the point of limitation. 7. We find that admittedly Notification No. 12/2003-ST dated 20.6.2003 excludes the value of materials sold from the value of the taxable services. The board's circular No. 59/8/2003-ST dated 20.6.2003 is also to the effect that the cost of goods or materials sold by service provider to the receiver of such service during the course of the providing of the taxable services has to be excluded from the value of the services. The said circular further clarifies that the exemption to that extent would be available only in cases where the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is further seen that during the last hearings, the appellant was directed to produce on record evidence for consideration including any literature issued to public for enrolment in coaching, invoices issued to enroll the candidates and evidence showing that two separate activities are not integrated to each other. The Id. Advocate placed on record the bills issued by M/s Porwal NewsAgency, during the relevant period. Ongoing through the said bills, we find that the same is by a newspaper agency and pre-printed bills showing the names of various magazines which the agency sells. The said names include various household magazines like Grihshobha, Saheli, Sarita, Mukta etc. as also various other magazines like Readers Digest, Science to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided by publisher and printed on books. Similarly in the case of M.K. Jain Classes v. CCE [2008] 14 STT 314 (New Delhi - CESTAT) the benefit of Notification No. 12/2003-ST was extended by observing that the study material/books published by the assessee was also being sold to outsiders and as such was a separate activity from the activity of coaching. As such, we are of the view that the above decision is also not applicable to the facts of the present case, where it stands established that it is only the value of the service which was being artificially bifurcated. 11. Ld. Advocate has also referred to various decisions to submit that the service tax based on income tax returns cannot be upheld. We find that the present case is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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