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2020 (2) TMI 759 - AT - Service TaxCommercial training or coaching service - Nature of activity - sale or service - sale of books - provisions of hostel facility and sale of books - naturally bundled services or not - exemption on hostel facility. Whether sale of books is service? - HELD THAT:- It was not compulsory that books cannot be sold to any other person than the one who was receiving the commercial training or coaching service. The books were published by M/s MKC Publication and were available on flipkart for purchase by anybody. The separate invoice were issued for sale of books and cash receipts out of sale on books were separately maintained in the book of account - the value of the books cannot be ascertained on the basis of the cost of paper used and cost of printing - sale of books was not taxable activity and therefore, there was no service tax leviable on the sales value of books. Whether provisions of hostel facility and sale of books are to be combined with provisions of commercial training or coaching service as bundled service? - HELD THAT:- Revenue has not brought forward any evidence that majority of service providers in the field of commercial coaching or training service provided hostel facility. In terms of the criteria stated in the manner of determining if the services are bundled as clarified by Central Board of Excise & Customs it is not possible to bundle service of provisions of hostel facility with commercial training or coaching in the present case - the provisions of commercial training or coaching service and provisions of hostel cannot be bundled under the provisions of Section 66F of the Finance Act, 1994. Whether service tax was exempted on hostel facility? - HELD THAT:- The hostel facility is provided for less than ₹ 100/- per day and therefore, it is entitled for exemption under Notification No.31/2011 dated 25 April, 2011 and Serial No.18 of Notification No.25/2012-ST - confirmation of service tax on hostel charges set aside. Penalties - HELD THAT:- Since the demand on service provider do not sustain, the penalty on the other appellant does not sustain. We set aside penalties imposed on Shri Saurabh Singh, the appellant. Except for the service tax, interest and penalty paid by the appellant before issue of show cause notice, the impugned order is set aside - appeal allowed - decided in favor of appellant.
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