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TMI Blog2024 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... e the free supplies of materials provided by the service recipient. In taxable value of service. Thus, we do not find any merit in the impugned order and the same is set aside. In result, the appeal is allowed, with consequential relief, if any. - SHRI ASHOK JINDAL, MEMBER (JUDICIAL) AND SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL) Shri Jitesh Chowdhury, Chartered Accountant for the Appellant Shri K. Choudhuri, Authorized Representative for the Respondent ORDER The appellant is an appeal against the impugned order wherein differential duty has been demanded from the appellant on free supplies of material supplied by the service recipient. 2. The facts of the case are that the appellant are providing taxable services and receive mining contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... about the inclusion of expenses of cost reimbursed by a service provider from a service recipient and charged in the course of providing / agreeing to provide a taxable service; in this case, appellant did not charge anything to the service recipient as reimbursement. It is submitted that in fact, in this case demand has sought to be recovered from the appellant for free issue of materials by the service recipient, for providing the service in question. 6.1. It is their submission that the issue involved in this matter has been settled by the Honourable Apex Court in the case of Commissioner of Service Tax v. Bhayana Builders Pvt. Ltd., [2018] 91 taxmann.com 109 (SC)] which has been followed by the Tribunal in the case of Vantage Internati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the prescribed conditions. In the present case, it is an admitted fact on record that the appellant had never charged any cost of fuel to M/s. ONGC over and above the amount claimed by it for providing the taxable service. Since, M/s. ONGC was not required to make payment of fuel to the appellant, its value cannot be added to the taxable value both under the unamended and amended provisions of Section 67 ibid. Further, the appellant herein had received the entire consideration for provision of service in monetary terms. Hence, it cannot be said that it was not properly able to determine the value of taxable service, in order to attract the provisions of Rule 3 (b) of the Service Tax (Determination of Value) Rules, 2006. Similarly, the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice provider/assessee is to be included to arrive at the gross amount , or not is the poser. On this aspect, there is no difference in amended Section 67 from unamended Section 67 of the Act and the parties were at ad idem to this extent. 12. On a reading of the above definition, it is clear that both prior and after amendment, the value on which service tax is payable has to satisfy the following ingredients : a. Service tax is payable on the gross amount charged :- the words gross amount only refers to the entire contract value between the service provider and the service recipient. The word gross is only meant to indicate that it is the total amount charged without deduction of any expenses. Merely by use of the word gross the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich value is sought to be determined 13. A plain meaning of the expression the gross amount charged by the service provider for such service provided or to be provided by him would lead to the obvious conclusion that the value of goods/material that is provided by the service recipient free of charge is not to be included while arriving at the gross amount simply, because of the reason that no price is charged by the assessee/service provider from the service recipient in respect of such goods/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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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