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2018 (8) TMI 323 - CESTAT HYDERABADBenefit of N/N. 01/2006-ST - inclusion of value of free supplied materials in the gross amount - Held that:- The issue of materials supplied free by the service receiver has been finally settled by the Hon’ble Supreme Court in the case of M/s Bhayana Builders (P) Ltd., [2018 (2) TMI 1325 - SUPREME COURT OF INDIA], where it has been held that the value of free supply of goods or materials by the service recipient is not includible in the gross amount, for calculation of Service Tax even if the assessee claims abatement of service tax - demand set aside. Demand on mobilization advance paid - point of Taxation Rules - the relevant period of demand in this show cause notice is 2007-2008 to 2011-2012 and the last mobilization advance was paid on 01.12.2010 - Held that:- It has been held in the case of Thermax Instrumentation Ltd., [2015 (12) TMI 1222 - CESTAT MUMBAI] that the advances received by the appellants are not receipts but are in the form of loan given to them and not a payment against invoice and service tax cannot be levied on them - In this case, although interest is not charged by the service provider he takes a counter guarantee in the form bank guarantee from the service provider for an equal amount while providing advance. The service recipient is free to encash the bank guarantee at any time. The cost of the bank guarantee is incurred by the appellant - Thus, there is no case to add an amount of notional interest in the value of taxable services rendered - demand set aside. Appeal allowed - decided in favor of appellant.
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