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2023 (9) TMI 457 - CESTAT AHMEDABADValuation - inclusion of value of free supply of material like steel pipes and valves supplied by M/s. GSPC Gas Company Limited to the appellants in the gross amount charged for the purpose of discharging service tax liability under Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 as amended by Notification No. 23/2009-ST dated 07.07.2009 - HELD THAT:- As per the provisions of Section 67 of Finance Act, 1994 for the valuation of service on which service tax is to be charged, any consideration flown from the service recipient to the service provider either in the monetary form or in any other form which is not ascertainable such benefit which flow back to the service provider need to be included in the gross amount charged for levy of service tax - the consideration which is not received by the service provider shall not form part of taxable value under the term gross amount charged under Section 67 for levy of service tax. The issue is no longer res-integra as the matter has already been decided by Hon’ble Apex Court in the case of COMMISSIONER OF SERVICE TAX ETC. VERSUS M/S. BHAYANA BUILDERS (P) LTD. ETC. [2018 (2) TMI 1325 - SUPREME COURT], where it was held that The value of the goods/materials cannot be added for the purpose of aforesaid notification dated September 10, 2004, as amended by notification dated March 01, 2005. It is clear from the above that the service tax is to be levied in respect of ‘taxable services’ and for the purpose of arriving at 33% of the gross amount charged, unless value of some goods/materials is specifically included by the Legislature, that cannot be added. The impugned order-in-original set aside - appeal allowed.
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