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2018 (2) TMI 841 - AT - Service TaxCommercial Training or Coaching Service - Franchise Services - appellants are not paying service tax on the consideration received for sale of books and materials to the franchise - exemption under N/N. 12/2003 ST dated 20.06.2003 - whether or not the appellants are right in their claim for exemption under Notification No.12/2003? - Held that: - The said Notification provides for exemption of Service Tax for “so much of the value of all taxable services, as it is equal to the value of goods and materials sold by the service provider to the recipient of service from the Service Tax leviable therein under Section 66 of the Act, subject to the condition that there is documentary proof specifically indicating the value of said goods and materials. In the present case, one of the grounds for denial of exemption is lack of documentary evidence as required for the Notification - the claim of the appellant that they have sold the books and study materials as per the commercial invoices stands established. However, the total quantum of such sale can be verified with all the supporting evidence to determine the correct quantum of exemption available to the appellant. This can be done by the jurisdictional assessing authority. Similar dispute with reference to applicability of N/N. 12/2003 ST came-up before the Tribunal in the case of M/s Cerebral Learning Solutions Pvt Ltd [2013 (4) TMI 527 - CESTAT NEW DELHI], where it was held that the exemption Notification is clear and it admits no restrictive clauses - In the present case, on perusal of the contractual arrangement as well as sale invoices, it can be held that the claim of the appellant for exemption under N/N. 12/2003 cannot be denied. Appeal allowed - decided in favor of appellant.
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