Page 93 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] MIND Q. SYSTEMS PVT. LTD. v. COMMR. OF CUS., C. EX. & S.T., HYDERABAD-II 307
(2) Registration fee
(3) Examination fee for examinations conducted by Indian Testing
Board.
6. It is not in dispute that the sale of books is not a separate enterprise
by the assessee. These books are supplied to the students as study materials.
They are not priced separately. There is no separate invoice raised upon the stu-
dents for the sale of books. The cost of the books is also part of the total cost of
training rendered by the assessee. Similarly, registration fee and the examination
fee claimed by the assessee are also not billed separately. There is no evidence
that the examination fee collected by the appellant is an expense and correspond-
ing amount has been paid by them to any Board conducting the examinations.
All these deductions are reckoned by the assessee on their own, out of the gross
amount collected from the students towards rendering training services. Hence,
there is a difference between the amount which was actually collected by them
from the students and the amount which was shown by the assessee in their ST-3
returns on which service tax was paid.
7. During hearing, Learned Counsel for the assessee could not produce
any evidence to show that the amounts on which they have not paid service tax
were not part of the consolidated fee collected by them from the students for
rendering commercial training and coaching services. It would have been a dif-
ferent case if the books in question were priced publications being sold separate-
ly under the invoice. There is nothing on record to show that the books in ques-
tion are not even priced. Under these circumstances, we find the assessee is liable
to discharge service tax on the entire amount collected from the students as fees
for commercial training and coaching conducted by them. The next question to
be decided is whether the first appellate authority was correct in holding that the
assessee was entitled to the benefit of Notification 24/2004-S.T., dated 10-9-2004
read with Notification 19/2005-S.T., dated 7-6-2005. This notification reads as
follows :
“Exemption to vocational/recreational training institute for providing
commercial training or coaching services
Notification No. 24/2004 S.T.
Dated 10-9-2004
[As amended by Notification No. 19/2005 S.T., dated 7-06-2005]
In exercise of the powers conferred by sub-section (1) of Section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that
it is necessary in the public interest so to do, hereby exempts the taxable
services provided in relation to commercial training or coaching, by, -
(a) a vocational training institute; or
(b) a recreational training institute,
to any person, from the whole of the service tax leviable thereon under Sec-
tion 66 of the said Act.
Provided that nothing contained in this notification shall apply to the taxa-
ble services provided in relation to commercial training or coaching by a
computer training institute.
Explanation. - For the purposes of this notification, -
(i) “vocational training institute” means an Industrial Training Institute
or an Industrial Training Centre affiliated to the National Council
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