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2022 (5) TMI 1305 - AT - Service TaxExcess utilisation of cenvat credit - Whether the appellant is liable to pay interest and penalty on account of alleged excess utilisation of cenvat credit accrued at a later date on which appropriate interest has been paid by the appellant? - non-inclusion of value of free supplies made by their customers for provision of services by the appellant - HELD THAT:- The demand of interest on alleged excess utilisation of cenvat credit amounts to double demand of interest, as the appellant has already deposited interest on the delayed payment of tax at the applicable rate under Section 75 of the Act. Thus, the second demand of interest is in the nature of double jeopardy, which is not tenable - the demand of both tax and interest is set aside - decided in favor of appellant. Whether the appellant is liable to pay service tax with interest and penalty for not including the value of free supplies received from the customer/ principal, in provision of the services? - HELD THAT:- The issue is no longer res integra and it has been clarified by the Hon’ble Supreme Court in the case of COMMISSIONER OF SERVICE TAX ETC. VERSUS M/S. BHAYANA BUILDERS (P) LTD. ETC. [2018 (2) TMI 1325 - SUPREME COURT] that the free issue or supply of material to the contractor or service provider, are not be clubbed in the gross value for determination of service tax liability. The ruling of Hon’ble Supreme Court is applicable in the facts of the case and thus the demand is fit to be set aside - the issue is decided in favour of the appellant-assessee. Appeal allowed - decided in favor of appellant.
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