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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 ..... icient use of diesel and explosives - levy of service tax on such incentive received - Held that:- the incentives given by M/s Singareni are for appreciating the appellants performance in utilizing less quantum of oil and explosives. In fact the said incentives were not even known at the time of performance of the service and are always calculated subsequent to the completion of the service. As such it can be safely concluded that the same is more in the nature of a prize money for a good performance by the appellant and are in no way linked to the value of the services. As such we find no justification for including the same in the value of the services and to confirm service tax on the same. - Demand set aside - Decided in favor of asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel oil which is being supplied free of cost by M/s Singareni is to be added in the assessable value of the services and the bonus received by them in the shape of incentive for optimum use of explosives and diesel oil is to form part of the assessable value of the services, raised demand of duty against the appellant by way of issuance of show-cause notice dated 21/10/2012 for the period March 2008 to March 2012. The said show-cause notice stands culminated into an impugned order passed by the Commissioner confirming the demand of service tax to the extent of ₹ 57,74,30,683/- along with confirmation of interest and imposition of penalties to the extent of 100% of duty confirmed in terms of Section 78 of the Finance Act 1994. 4. Af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices provided by the service provider, the same would be equally applicable to the facts of the present case even though the services were different. In fact, the Tribunal in the case of Karamjeet Singh Co Ltd [2013 (32) STR 740 (Tri-Del)]followed the Larger Bench decision of the Tribunal as also that of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants and Technocrats Pvt Ltd Vs UOI [2013 (32)STR 740 (Tri Delhi)] (sic) and has held that the value of diesel supplied by the service recipient free of cost to the assessee, who was providing site formation services, would not be a component of the gross value charged for services provided for the purpose of computation of tax under Section 67 of the Finance Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived by the assessee in relation to service provided to their clients. Similarly, in the case of CCE Chandigarh Vs Facinate Advertising Marketing [2013 (31) S.T.R. 77 (Tri-Del)], it was held that the incentives received by the assessee for appreciating performance were not known at the time of providing services and the same was never a consideration received by the assessee so as to tax the same. Similarly in the case of Euro RSCG Advertising Ltd Vs CST Bangalore [2007(7) S.T.R. 277 (Tri-Bang)], it was held that incentives received from certain publications after they reached certain targets of advertising business are not connected with the services rendered to the clients. 8. In the present case also we find that the incentives gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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