TaxTMI 
TaxTMI 
2017 (5) TMI 52
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....iciary of the fees received from the trainees, through the appellant. Appellant has not received any consideration from the trainees directly. However, to provide the services, M/s SISI pays it to the extent of 73% of the amount received by it from the trainees. Such receipt was sought to be taxed by Revenue holding taxable service of Commercial Coaching and Training Service provided. 1.2 It is also submitted that out of the total amount payable to M/s. SISI by the trainees, 73% thereof was sought to be taxed under the category of Business Auxiliary Service again while that extent was also sought to be taxed under the entry Commercial Coaching and Training. The same receipt cannot be doubly taxed under two different taxing entries. 1.3 Th....
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...., there was no consideration of the availability of benefit of Notification No.14/2004-ST, dated 10.09.2004 to the appellant. 3. On the above premise, it is prayer of the appellant that if the matter goes back to the Authority below with specific direction to ascertain the nature and character of receipt and thereafter examine taxability thereof, grant of benefit of exemption under appropriate notification can be adjudged. Such exercise only shall serve useful purpose of law and reduce the dispute. 4. Revenue on the other hand says that there is no multiple taxation made. Learned authority below has passed appropriate order. 5. Heard both sides and perused the records. 6. When para 16 of the show-cause notice is read, that shows the all....
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.... units as well as their appointed Franchisees have collected fees/charges from the students by using the printed bill books of Apollo. The entire amounts so collected were accounted and deposited in the accounts of Apollo; (f) M/s. Apollo/Chennai consolidated entire amount collected and received from them, by using the bill book of SISI as well as that of Apollo and 70% to 85% of the said amount, were paid to the respective Franchisee by Apollo for providing the said computer courses in the name and on behalf of SISI and Apollo; (g) The computer courses in software or hardware provided in the name of M/s. Apollo by units of Apollo and their appointed franchises are classifiable under the category of Commercial Training or Coaching Service....
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.... name & on behalf of SISI by M/s. Apollo, its branches as well as by their appointed franchisees, for which M/s. Apollo received 73% out of total amount deposited in the accounts of SISI, is Classifiable under the category of "Business Auxiliary Services" and M/s. Apollo / Chennai are liable to discharge serviced tax on the total amount received from SISI/Chennai being the taxable Value for the Business Auxiliary Service provided by M/s. Apollo, from 10.09.2004 as explained supra. The tax liability payable for Business Auxiliary Service for the period from 10.09.2004 to 31.03.2007, works out to Rs.57,51,224/- (Service tax Rs. 56,38,455/- and Education Cess Rs. 1,12,769/-) on the total taxable Value worked out to Rs. 5,58,23,108/-, as detail....
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....ould not be arbitrary taxation. The subject of the State can only be taxed under express provision of law without any intendment. Therefore, appellant is entitled to a fair opportunity of hearing for determination of the nature and character of receipt of the concerned period and to determine taxability thereof. Only after such an exercise is made, taxability of services, if any can be adjudged and arbitrary taxation can be avoided. Appellant should get opportunity to argue on the benefit of Notification No.10/2003-ST, dated 20.06.2003 and No.14/2004-ST, dated 10.09.2004. 9. Appellant is entitled to course of natural justice at every stage of determination of the levy if any, in the readjudication proceeding and there should not be double ....