2015 (12) TMI 597 - AT - Service Tax

Valuation - whether the appellants, who were engaged in Commercial or Industrial Construction Service and were availing the benefit of Notification No. 20/2004-S.T. and 1/2006-S.T., are under a legal obligation to include the value of the items supplied free of cost by service recipient for the purpose of payment of service tax - Held that - items supplied free of cost by service recipient would not form value of service and would get excluded for the purpose of the notification in question. - Decision in the case of Bhayana Builders 2013 (9) TMI 294 - CESTAT NEW DELHI (LB) followed - Decided in favour of assessee.

Summary

The appeal involved whether items supplied free of cost should be included in service tax payment for 'Commercial or Industrial Construction Service'. The issue was decided based on a previous Larger Bench decision in the case of Bhayana Builders (P) Ltd. It was concluded that such items should not be included in the service value. The impugned order was set aside, and the appeal was allowed in favor of the appellant.