9911796707
TMI Blog2014 (9) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... I 294 - CESTAT NEW DELHI] has categorically ruled in favour of the assessee that cost of free supply of goods for rendering the services is not includable in the assessable value for the discharge of Service tax liability. Such a judicial pronouncement of a Larger Bench has been disregarded by the Adjudicating Authority - Judicial discipline demands that the Adjudicating Authority should follow the pronouncements made by the higher judicial forums without any reservations. - demand set aside - decided in favor of assessee. - Appeal No. : ST/11752/2014 - ORDER No. A/11607/2014 - Dated:- 2-9-2014 - Mr. M.V. Ravindran and Mr. H.K. Thakur, JJ. For the Appellant : Shri Avinash Poddar (CA) For the Respondent : Shri G P Thomas (AR) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or used by the provider of the construction service for providing such service but in the subject case, the gross amount charged by the assessee from JKPL was not inclusive of the value of the goods materials supplied or provided or used by the assessee for providing of the construction service, as the cost of the major materials i.e., Cement Reinforcement Steel supplied by the client and the value of the same had not been charged/added in the taxable value, therefore, the assessee was not entitled for the benefit of the abatement @ 67% of the gross amount of ₹ 6,87,19,916/- charged for service provided as otherwise available under Notification No. 15/2004-ST dated 10.09.04 or Notification No. 1/2006-S.T. dated 01.03.2006. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax liability on the GTA services. As regards the Service Tax liability on Commercial Constructions, it is his submissions that the Larger Bench decision on M/s Bhayana Builders Pvt Ltd (Supra) was cited but was not followed by the Adjudicating Authority. 6. Ld DR reiterates the findings of Adjudicating Authority. 7. After considering the submissions made by both sides and perusal of records, we find that the issue is regarding Service Tax liability on the appellant under the category of GTA Services and Commercial or Industrial Construction Services. 8. As regards Service tax liability on the GTA Services, as the appellant is accepting the tax liability, the said tax liability is confirmed against the appellant alongwith inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noted that the Adjudicating Authority has recorded incorrect finding as to the non-applicability of the ratio of the Larger Bench decision. Judicial discipline demands that the Adjudicating Authority should follow the pronouncements made by the higher judicial forums without any reservations. Suffice to say that the Adjudicating Authority has let go the judicial discipline, in our view, the impugned order to the extent it confirms the demand of Service Tax liability under the category of Commercial or Industrial Construction Services by including the value of free supply material is liable to be set aside and we do so. 11. The impugned order to the extent it confirms the demands of the Service Tax liability on the appellant under the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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