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2012 (7) TMI 324 - HC - Service TaxValuation - activities relating to maintaining and operating the equipments - service tax liability on enhanced value including cost of electricity supplied free of cost by the customers in the value of taxable service - Held that:- Argument of the Revenue is not acceptable that the electricity supplied free of cost is a consideration in kind received by the assessee from its customers. Admittedly, the electricity supplied free of cost is meant to be consumed in the manufacture of oxygen and admittedly the oxygen so manufactured is used by the customers in the manufacture of their final product. It is the customers of the assessee who clear the final product on payment of duty and no benefit accrues to the assessee on such clearances. Thus, the electricity supplied free of cost by the customers to the assessee does not in any way amount to additional consideration received by the assessee in kind - sustainability of the demand raised against the assessee being in doubt, it is a fit case for entertaining the appeal without any predeposit - in favour of assessee.
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