2015 (9) TMI 1533 - AT - Service Tax

Benefits of N/N. 15/2004-S.T., dated 10-9-2004 - denial on the ground that the appellants have not included the value of the pipes and other materials provided by the service recipient viz., M/s. Gas Authority of India Ltd. and M/s. Mahanagar Gas Ltd. etc - Held that - the issue is no more res integra in view of the Larger Bench decision of the Tribunal in the case of Bhayana Builders (P) Ltd. v. CST Delhi 2013 (9) TMI 294 - CESTAT NEW DELHI (LB) , wherein it has been held that the value of goods and materials supplied free of cost by a service recipient to the provider of the taxable construction service, being neither monetary or non-monetary consideration paid by or flowing from the service recipient, accruing to the benefit of service provider, would be outside the taxable value or the gross amount charged, within the meaning of the later expression in Section 67 of the Finance Act, 1994 - appeal allowed - decided in favor of appellant.

Summary

The appellate tribunal in Ahmedabad allowed the appeal of the appellant, who provided services of laying pipelines for oil and gas transportation. The tribunal referred to a previous decision stating that the value of goods and materials supplied by the service recipient should not be included in the taxable value for service tax calculation.