2011 (1) TMI 845 - AT - Service Tax

Valuation of taxable services - inclusion of value of free supply - tax has been demanded by inclusion of the value of free supply of materials such as cement and steel in the assessable value of the commercial and industrial construction services - The assessees have made out a strong prima facie case for total waiver in the light of Tribunal s stay order in the case of Gulf Oil Corporation Ltd. Vs CST Hyderabad 2009 -TMI - 201798 - CESTAT, BANGALORE on similar issue - Stay granted.

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of predeposit of service tax of Rs.1,11,06,528/- along with interest and penalty. The tax was demanded for including the value of free supply of materials in the assessable value of construction services. The Tribunal granted total waiver of the amounts in question and stayed recovery during the appeal, citing a strong prima facie case similar to a previous stay order in Gulf Oil Corporation Ltd. Vs CST Hyderabad case.