CESTAT allows exemption under Notification No. 12/2003-ST in respect of goods and material sold by franchisor under franchise agreement, while discharging service tax under ‘Franchise Service’; Notes that agreement stipulated franchisor to provide prospectus, course materials, brochures, leaflets, direct mail materials, stationery, etc. free of cost to every registered student, in other words, material was to be printed and supplied by franchisor at own cost; Dismissing Revenue contention that there was lack of documentary evidence as required under the Notification, CESTAT observes that the contractual arrangement and sale invoices clearly demonstrate that books and study materials were sold as per commercial invoices; Refers to coordinate bench ruling in Cerebral Learning Solutions Pvt. Ltd.; Consequently, holds that exemption cannot be denied but total quantification thereof needs to be supported bydocumentary evidence as stipulated in the Notification, which can be verified by jurisdictional authorities: CESTAT
Citation: [TS-60-CESTAT-2018-ST]