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2014 (5) TMI 651 - AT - Service TaxValuation of service - Addition of price of electricity for determining the taxable value for purpose of service tax - quantum of service tax liability - operation and maintenance of the plant relating to two of its customers - Held that:- gross amount charged by the service provider for the service provided is as per the agreement. The price of electricity cannot be considered as an additional consideration received by the appellant form their customers. The appellant does not get benefitted by the free supply of the electricity in any way. Further, the electricity is consumed in the manufacture of oxygen. Thus, electricity is an input for the manufacture of oxygen. Oxygen, in turn, is used by the appellant's clients in the manufacture of iron and steel products. Electricity cannot be considered as an input for providing the services of operation of air separation plant, it cannot be considered as an additional consideration flowing to the appellant from their client for providing the service of operation of plant and cannot be considered as part of the gross amount charged for the service of operation of the plant - Decided in favour of assessee.
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