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2018 (11) TMI 228 - AT - Service TaxValuation - inclusion - receiving certain materials free of cost, such as, cement, rods etc, which were to be used by the appellant in the construction works - N/N. 15/2004-ST dated 10.09.2004 - Revenue was of the view that the value of materials supplied free of cost, should also be included in the gross amount charged since such materials have been used in the provision of service - benefit of abatement of 67%. Held that:- The present issue came before the Larger Bench of the Tribunal in the case of Bhayana Builders Pvt. Ltd. Vs. Commissioner of Service Tax, Delhi [2013 (9) TMI 294 - CESTAT NEW DELHI (LB)]. The Larger Bench decided that the gross amount charged cannot include the value of free supplied materials provided by the receiver of the service - thus, there is no justification for including the value of free supplied materials while determining the gross amount charged for the purpose of benefit of Notification No.15/04-ST ibid as amended. Consequently, there is no justification for the demand of service tax. The demand of interest as well as penalties imposed under various Sections of the Finance Act, 1994, are set aside - demand of service tax is already paid and is upheld - appeal allowed - decided in favor of appellant.
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