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TMI Blog2016 (10) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... o M/s Aptech. The appellant is liable to pay service tax on the fee collected from the students under commercial training or coaching services and this liability of the appellant, per se is not in dispute. M/s Aptech, who are collecting royalty form the appellant, for granting the appellant the franchisee rights is liable to pay service tax under franchisee service and they ere also paying such service tax. The invoices issued by M/s Aptech on the appellant would also indicate the same. 1.2 In such circumstances, the appellant should have availed Cenvat credit of service tax paid by M/s Aptech, on the basis of the invoices issued by them and should have paid service tax on the student fee collected. For. Example: Student fee : Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that although they had not paid service tax on the royalty amount paid to M/s AP TECH, service tax on the said amount has been paid by the latter. The difference in taxable value in ST-3 returns and income tax returns is because of the fact that appellants have deducted amount of royalty @ 20% of fees which have been transferred to Aptech inclusive of service tax, however Aptech is paying service tax on the said amount. M/s Aptech have issued certificate dated 07.02.0012 declaring recurring Franchisee fees and service tax collections from appellant; wherein inter alia, they have confirmed that they have received recurring Franchisee fees along with service tax from appellant; that they have remitted their share of service tax coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t may have been at fault, it cannot may be alleged that the tax liability on the entire amount of fees received by them have not been discharged, notwithstanding. the fact that the part of the fees has been transferred in the above manner to M/s Aptech. It also seen that this contention of appellant is supported by the case laws relied by him which are stated supra. To confirm whether service tax liability has been discharged by the appellant in respect of all such amounts transferred by them to M/s Aptech, to establish the fact or otherwise of revenue neutrality, we are of the considered opinion that the matter will require de novo consideration by adjudicating authority. We order accordingly. 6. In the result the appeal is allowed by way ..... X X X X Extracts X X X X X X X X Extracts X X X X
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