Tribunal held that cost of facilities provided by service ...

Service recipient's costs for CISF security like accommodation, medical, telecom not taxable as free supplies. Tribunal upheld Bhayana Builders ratio.

Case Laws     Service Tax

August 7, 2024

Tribunal held that cost of facilities provided by service recipient to Central Industrial Security Force for rendering security services, such as barrack accommodation, medical expenses, lease accommodation, telephone charges, vehicle hiring, stationery, miscellaneous expenses, is not includible in gross value for service tax u/s 67 of Finance Act, 1994. Relying on Supreme Court's decision in Bhayana Builders, Tribunal ruled that free supplies do not form part of total value for service tax. Consequently, demand of service tax on such facilities was set aside.

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