2014 (5) TMI 762 - AT - Service Tax

Valuation of goods - outdoor catering services - whether cost of value of LPG cylinders supplied free by M/s. ITC would be taxable or not - Held that - This value would not be included in the assessable value. The other aspect of the matter is that SCN was issued on 22-4-2009 and the Commissioner (Appeals) set aside penalty on the ground that there is no suppression of fact. After considering the facts and circumstances of the case, we find that pre-deposit of tax, interest and penalty should be waived. Accordingly, the pre-deposit of tax along with interest and penalty is waived and recovery thereof is stayed during pendency of the appeal. - Stay granted.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the applicant, who provides outdoor catering services. The dispute was regarding the taxability of the value of LPG cylinders supplied free by M/s. ITC Ltd. The tribunal decided that the value of the cylinders should not be included in the assessable value. The pre-deposit of tax, interest, and penalty was waived, and recovery was stayed during the appeal.