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M/s Jetking Infotrain Ltd Versus CC Delhi

2018 (2) TMI 841 - CESTAT NEW DELHI

Commercial 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 ôso much of the value of all taxable services, as it is equal to the value of goods and .....

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tands 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 .....

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ddar, AR ORDER Per B. Ravichandran The appeal is against order dated 13.01.2014 of Commissioner of Service Tax (Adj.), New Delhi. The appellant, a Public Limited Company, are engaged in Information Technology Training in hardware and networking for the past many years. The appellants are operating their teaching centers under the name and design Jetking . They are registered with the Service Tax Department under the category of Commercial Training or Coaching Service and Franchise Services . The .....

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eration. In other words, it is held that the exemption of value of books and materials, claimed to have been sold by the appellant, is not available to them as these are not supported by documentary evidence. It was also held that the educational training materials were developed by the appellants and when they are providing service of commercial coaching or training, they were paying tax including the value of such material. When such training is imparted by the franchise, they provided prospec .....

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nalty under Section 78 and further penalty under Section 77 of the Finance Act, 1994. 3. The ld Counsel appearing for the appellant submitted that in pursuance of the franchise agreement, the appellant sells study material to its franchises. This is a commercial transaction of sale of goods and not service. Benefit of Notification No.12/203 is available as value equal to the sale of goods and materials by the service provider to the service recipient is exempted. Reliance was placed on various d .....

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No. 12/2003. The said exemption will not apply to indivisible service contract. 5. We have heard both the sides and perused appeal record. The only issue for decision is whether or not the appellants are right in their claim for exemption under Notification No.12/2003. 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 Ser .....

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s. Hence 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. 6. We note that clause 2.7 of the agreement stipulated that franchiser is to provide prospectus, course materials, brochures, leaflets, dire .....

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n Notification dated 20.6.2003. 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, 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 a power exclusively authorized to the Cen .....

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