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2018 (8) TMI 324 - AT - Service TaxValuation - inclusion of value of the free supply of materials in assesable value - inclusion of Bonus received from service recipient for economically using the diesel and explosives at the end of providing services. Whether the value of the free supply of materials viz., explosives and diesel by service recipient M/s SCCL has to be included for the purpose of reckoning the Service Tax payable? - Held that:- Hon’ble Apex Court in the case of Bhayana Builders [2018 (2) TMI 1325 - SUPREME COURT OF INDIA] held that the value of free materials supplied by the service recipient cannot be included in the value for the purpose of reckoning Service Tax - demand set aside. Whether bonus which they receive from their service recipient for economically using the diesel and explosives at the end of providing services is liable to be included in the value of services rendered? - Held that:- In almost an identical case, in the case of Intercontinental Consultants and Technocrats [2018 (3) TMI 357 - SUPREME COURT OF INDIA], it has been held by the Supreme Court that value of free diesel and explosives supplied by the service recipient cannot be included in the value of services rendered for the purpose of assessment of Service Tax under Section 67. As far as the issue of bonus received by the service provider for efficient use of diesel and explosives is concerned, this amount was not known at the time of provision of services - This amount cannot be included as value of taxable services rendered under Section 67. Appeal allowed - decided in favor of appellant.
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