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TMI Blog2018 (12) TMI 1785X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court in the case of COMMISSIONER OF SERVICE TAX ETC. VERSUS M/S. BHAYANA BUILDERS (P) LTD. ETC. [ 2018 (2) TMI 1325 - SUPREME COURT] where it was held that the value of goods and material supplied free by the service recipient is not to be included in the gross amount charged as per the provisions of section 67 of the Finance Act, 1994. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... aiming the abatement of 67% as per the provisions of Notification No. 1/2006-ST dated 1.3.2006. 2. A show cause notice No. 367/Div II/2012 dated 30.3.2012 came to be issued demanding the service tax of ₹ 61,81,455/-. The provisions of demanding interest as per section 75 of the Finance Act, 1994 as well as penal provisions under section 76 and 77 were also invoked. The matter got adjudicated vide order in original No. 36/S.Tax/D-I/ 2015 dated 4.11.2015 whereunder all the charges as invoked in the show cause notice have been confirmed by the learned Commissioner. The appellant are before us against the above mentioned impugned order in original. 3. The learned advocate appearing on behalf of the appellant has submitted that it is an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s/materials. This further gets strengthened from the words 'for such service provided or to be provided' by the service provider/assessee. Again, obviously, in respect of the goods/materials supplied by the service recipient, no service is provided by the assessee/service provider. Explanation 3 to sub-section (1) of Section 67 removes any doubt by clarifying that the gross amount charged for the taxable service shall include the amount received towards the taxable service before, during or after provision of such service, implying thereby that where no amount is charged that has not to be included in respect of such materials/goods which are supplied by the service recipient, naturally, no amount is received by the service provider/assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said argument. A plain reading of Explanation (c) which makes the 'gross amount charges' inclusive of certain other payments would make it clear that the purpose is to include other modes of payments, in whatever form received; be it through cheque, credit card, deduction from account etc. It is in that hue, the provisions mentions that any form of payment by issue of credit notes or debit notes and book adjustment is also to be included. Therefore, the words 'in any form of payment' are by means of issue of credit notes or debit notes and book adjustment. With the supply of free goods/materials by the service recipient, no case is made out that any credit notes or debit notes were issued or any book adjustments were made. Likewise, the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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