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2018 (5) TMI 837 - AT - Service TaxValuation - includibility of value of free supply made by service recipient, in the assessable value for determining service tax liability - Held that: - Hon'ble Apex Court in their landmark judgment in the case of Commissioner of Service Tax Etc. Versus M/s. Bhayana Builders (P) Ltd. Etc. [2018 (2) TMI 1325 - SUPREME COURT OF INDIA], has unequivocally held that value of goods / materials supplied free of cost by service recipient and used for providing taxable service of construction and industrial complex is not to be included in “gross amounts” because no price is charged for that by the assessee / service provider - decided in favor of assessee. Demand of service tax on the TDS amounts and not included by the assessees - Held that: - there is no doubt that these amounts are required to be included in the assessable value - there are merits in the submission of the Ld. Advocate that they would be eligible for 67% abatement on the amount of TDS and accordingly the service tax liability is required to be re-quantified - matter on remand. Penalties - Held that: - it cannot be denied that the issue was very much mired in confusion and litigation for quite some time. In the circumstances, there was reasonable cause on the part of the assessee in his failure to discharge tax liability on the portion of the TDS amounts - penalty set aside. Appeal allowed in part - part matter on remand.
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