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2019 (2) TMI 2087 - AT - Service TaxValuation - Commercial or Industrial Construction Service - value of the free supplies material should be added in gross value or not - Commercial or Industrial Construction Service - exemption under N/N. 15/2004-ST - HELD THAT - This issue has been settled by SC in the case of COMMISSIONER OF SERVICE TAX ETC. VERSUS M/S. BHAYANA BUILDERS (P) LTD. ETC. 2018 (2) TMI 1325 - SUPREME COURT where it was held that value of the goods/materials cannot be added for the purpose of aforesaid notification dated September 10, 2004, as amended by notification dated March 01, 2005. Thus, for the purpose of computing the gross value of Commercial or Industrial Construction Service value of free supplies material by the service recipient need not be added in the gross Value of service. The impugned order set aside - appeal allowed.
Issues involved: Whether the value of free supplies material should be added in the gross value of Commercial or Industrial Construction Service for the purpose of granting exemption under Notification No. 15/2004-ST.
Analysis: The judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Hon’ble Mr. Ramesh Nair and Hon’ble Mr. Raju, addressed the issue of whether the value of free supplies material should be included in the gross value of Commercial or Industrial Construction Service for granting exemption under Notification No. 15/2004-ST. The appellant, represented by Mr. N.V. Shuchak, argued that the issue had been resolved in the case of Bhayana Builder (P) Ltd. Vs. Commissioner of Service Tax-2018 (10) GSTL 118 (SC). On the other hand, Mr. A. Mishra, the Joint Commissioner (AR) for the Revenue, supported the findings of the impugned order. After considering the arguments from both sides and examining the records, the Tribunal found that the issue had already been settled by the Hon’ble Supreme Court. The Tribunal concluded that, as per the Supreme Court judgment, the value of free supplies material by the service recipient does not need to be added to the gross value of the service for Commercial or Industrial Construction Service. Therefore, the Tribunal set aside the impugned order and allowed the appeal. The judgment clarified the application of the exemption under Notification No. 15/2004-ST in relation to the inclusion of the value of free supplies material in the calculation of the gross value of the service provided.
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