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TMI Blog2016 (1) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... into between the two. The scope of the work involved in the orders placed by the service recipient are blast hole drilling, controlled blasting with shock tube initiation, excavation, loading, transportation and dumping etc. of over-burden. The appellant was discharging its service tax liability on the amounts raised by various bills and paid by the service recipient. 2. In terms of the said agreement, M/s Singareni were providing specific quantities of explosives and diesel oils for rendering the above work. Further, in terms of the agreement, if the appellant consumes explosives and diesels over and above the agreed quantity per cubic meter of overburden removed, a penalty at the agreed rates was to be levied on the appellant. Similarly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services or not. 5. As regards the first issue we find that the Larger Bench of the Tribunal in the case of Bhayana Builders (P) Ltd Vs CST Delhi [2013 (32) STR 49 (Tri-L.B.)] has held that the cost of the free supply items by the service recipient is not to be added in the assessable value of the services. It is seen that the said decision was relied upon by the appellant before the learned Commissioner, who has not followed the same on the ground that the said decision was in the context of valuation of construction services in general and meaning of expression "gross value" charged in Notification No. 15/2004-ST, as amended. The same would not be applicable in respect of services of site formation. 6. However we find no merits in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egards the second issue, we find that it is a part of the orders placed by M/s Singareni on the assessee providing provisions for imposition of penalty or for grant of incentives dependent upon the use of the quantity of explosives and the diesel oil. The said bonus which stands paid to the appellants, dependent upon the conservative and efficient use of diesel and explosives, can by no stretch of imagination be held to be value of the services being provided by them. It is to encourage the service provider to use the oil and explosives in a conservative manner. In fact, such type of bonus being given by the service providers has been considered by the Tribunal in a number of cases. Tribunal in the case of Kerala Publicity Bureau Vs CCE [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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