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TMI Blog2018 (8) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... the service recipient cannot be included in the value for the purpose of reckoning Service Tax - demand set aside. Whether bonus which they receive from their service recipient for economically using the diesel and explosives at the end of providing services is liable to be included in the value of services rendered? - Held that:- In almost an identical case, in the case of Intercontinental Consultants and Technocrats [2018 (3) TMI 357 - SUPREME COURT OF INDIA], it has been held by the Supreme Court that value of free diesel and explosives supplied by the service recipient cannot be included in the value of services rendered for the purpose of assessment of Service Tax under Section 67. As far as the issue of bonus received by the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered for early hearing. At this stage, we also examined the subject matter of all the appeals listed above and found that all these cases can be decided on merits as well. 2. Heard both sides and perused the records. 3. The appellants herein are registered with the Service Tax Department for site formation, clearance and excavation services and have been engaged by M/s Singareni collieries Company Ltd (SCCL) for rendering services of blast hole drilling, controlled blasting with shock tube intiation, excavation, loading, transportation and dumping, etc., of overburden at various sites and have been discharging service tax on the value of these services. As per the terms of tender, the appellants were required to quote their rates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t includable in the value of Service Tax u/s 67 of Finance Act. He relied on the judgment of the Hon ble Supreme Court in the case of Intercontinental Consultants and Tehnocrats Pvt Ltd [2018 (10) GSTL (40) (SC)] in which the Hon ble Apex Court has held as above. He argued that the above ratio squarely applied to their case and therefore they are not liable to pay Service Tax on this value. As far as the bonus which they receive for efficient use of diesel and explosives is concerned, this is not known to them at the time of providing the service. It is calculated subsequent to completion of service. It is in the form of a prize for using these resources (which were provided by the service recipient) efficiently and cannot be linked to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and explosives supplied by the service recipient cannot be included in the value of services rendered for the purpose of assessment of Service Tax under Section 67. As far as the issue of bonus received by the service provider for efficient use of diesel and explosives is concerned, this amount was not known at the time of provision of services. If the service provider uses these materials supplied free of cost by the service recipient economically as per fixed benchmarks, he gets an extra amount as prize money. This amount cannot be included as value of taxable services rendered under Section 67. In an identical case, CESTAT Bangalore in the case of AMR India Ltd (supra) held as above and we respectfully agree with the same. In view of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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