M. Veeraiyan, Technical Member - Heard both sides extensively on the stay petition.

2. Service Tax demand of Rs 30,43,531/- (Rupees thirty lakhs forty-three thousand five hundred and thirty one only) along with interest stands confirmed relating to the period 1-4-2004 to 31-3-2009 and equal amount of penalty under Section 78 stands imposed. The demand has been raised on the value of CD Roms sold which contained a kind of "live virtual class" which was provided to enhance the skill or impart knowledge on certain subjects to the buyers of CDs. The Service Tax also stands demanded on amounts collected for imparting "online learning/e-learning" to certain customers. These demands have been raised under the category of ' Commercial Training or Coaching Services'.

3.1 Learned advocate for the appellant submits that the prospective learners merely buy the CD Roms and go through the contents of material contained in the CD Roms in voice mode along with written text. There is no interaction between any teacher and the students. The learning is basically self learning based on the material in the CDs.

3.2 As regards e-learning, he submits that the material available in online courses are identical to what is available in CDs (CDs were played for a while for our viewing).

3.3 Referring to the definition of the 'taxable service', he submits that in respect of sale of CD and registration for e-learning, there is no presence of any institute or establishment interacting with the perspective students and therefore, the activities cannot be covered under the entry for 'taxable service'.

4. Learned Commissioner (AR), referring to Board's clarification dated 20-6-2003, submits that the postal coaching is also covered by the 'taxable service' and sale of CDs containing learning material and e-learning are akin to postal coaching.

5. We have carefully considered the submissions from both sides and perused the records and also glanced the contents of a typical CD. We find that, unlike in a regular coaching, there is no institute, there is no contact whatsoever alleged between the students and the teacher. Prima facie, we are of the view that these activities may not fall under the category of 'Commercial Training and Coaching' and therefore, we deem it appropriate to waive the pre-deposit of dues as per the impugned order and stay recovery thereof till disposal of the appeal.