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TMI Blog2014 (12) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... t they are eligible for exemption from service tax on the value of the material/books sold in terms of Notification No. 12/2003-ST dated 20.06.2003. The adjudicating authority referred to para 2.9.1 of Board Circular No. 59/8/2003 dated 20.06.2003 which states that: in case of Commercial Training and Coaching Institute, the exemption on cost of material sold will apply only to the sale value of Standard Text Books, which are priced and any study material or written Text provided by the service will not quality for exemption under Not. 12/2003-ST and their value will be subjected to Service Tax. Simple copies of study material lying at the premises were obtained and examined and found that printed price is not shown. In this regard they st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable service of Commercial Training and Coaching qua Section 65(165)(zzc) read with Section 65(26) and (27) of the Act. Section 67 of the Act enjoins that the gross amount charged by the taxable service provider/assessee on the taxable service. Accordingly, the value of the books or course material supplied by the assesses to its students/trainees is required to be included in the value of the taxable service as the gross amount charged by the service provider. The assessee however relied on the Notification dated 20-06-2003, issued by the Central Government in purported exercise of its power under Section 93(1) of the Act. Under this general exemption notification, the Central government exempted 'so much of the value of all the taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Training and Coaching Service which material does not answer the description of priced standard text books. 6. In our considered view, the clarification in the Board Circular dated 20.06.2003 is misconceived, clearly illegal and contrary to the statutory exemption Notification dated 20.06.2003. Where the legislature has spoken or in exercise of its statutory power exemption is granted by the Central Government under Section 93 of the Act, the CBEC has no manner of power, authority or jurisdiction to deflect the course of an enactment or the exemption granted. Grant of exemption from the liability to tax is power exclusively authorized to the Central Government under Section 93 of the Act. This statutory provision accommodates no partic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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