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2015 (9) TMI 1471 - AT - Service TaxValuation - Whether the value of the free materials supplied by the service recipient to the service providers is to form part of the assessable value of the services being provided by them or not - Held that - by following the various decisions of Tribunal, the value of free materials supplied by the service recipient to the service providers do not form part of the assessable value of the site formation and mining service etc. being provided by them. Hence, the impugned order is set aside. - Decided in favour of appellant with consequential relief
Issues: Whether the value of free materials supplied by the service recipient to the service providers should be part of the assessable value of the services provided.
Analysis: The judgment by the Appellate Tribunal CESTAT Bangalore involved multiple appeals with a common issue. The appellants, except one, were service providers categorized under site formation and mining services. The exception, M/s. Singareni Collieries Company Ltd., acted as a service recipient, providing diesel oil and explosives free of cost to the service providers for their services. The central issue revolved around determining whether the value of these free materials should be included in the assessable value of the services provided by the appellants. The Tribunal referred to various decisions, including those in the cases of Bhayana Builders (P) Ltd. Vs. CCE, Raipur, Karamjeet Singh & Co. Ltd. Vs. CCE, Raipur, CCE, Pune-II Vs. V.B Patil Kanwade Associates, Baliram Gopal Mahajan Vs. CCE, Nashik, S.V. Engineering Constructions Vs. CCE, Guntur, and ATR Constructions Pvt. Ltd. Vs. CCE, Ghaziabad. These decisions were followed by the Tribunal in the case of Sushee Infra Pvt. Ltd. Vs. CCE, C&ST, Hyderabad-II. The Additional Commissioner representing the Revenue acknowledged that the issue in the present appeals was directly covered by the aforementioned decisions. Consequently, the Tribunal set aside the impugned orders and allowed all the appeals, providing consequential relief to the appellants. The judgment was pronounced and dictated in open court, bringing the matter to a close.
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