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TMI Blog2011 (1) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant on the ground that the appellants had not included the value of materials supplied free of cost by the promoter/service recipient for the computation of taxable services. 3. The learned Advocate for the appellants, placing reliance on the decision of the Madras High Court in the matter of Larsen & Toubro Ltd. v. UOI reported in (2007) 011 STT 0027 (HC-CHENNAI) = 2007 (7) S.T.R. 123 (Mad.) of the Tribunal in the matter of P. Chandran v. CCE (S.T.), Salem reported in 2008 (12) S.T.R. 33; Era Infra Engineering Ltd. v. Union of India reported in (2008) 16 STT 0403 (DELHI) = 2008 (11) S.T.R. 3 (Del.) and Cemex Engineers v. Commissioner of Service Tax, Cochin, reported in 2010 (17) S.T.R. 534, submitted that considering the explana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- "23. The appellants have relied upon Section 66 and Section 67 of Finance Act, 1994. According to them. Section 66 provides for collection of Service tax on the value of taxable services and Section 67 defines the value as the gross amount charged by the service provider Therefore, the value of taxable services is the amount charged by the service provider from the service receiver and if money is not charged, it will not form a part of the value of the taxable service. It was submitted that the notification should be read in harmony with these Sections. This also applies to the value of the goods or material provided by the service provider. Where there is no amount charged by the service provider for any material supplied or prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 67 of the Finance Act, 1994 and the Valuation Rules. The fact that it is not only the supplies made by the service provider or materials used by him which form a part of the service, but also other considerations which are non-monetary in nature, are also required to be taken into account. Rule 3 of Service tax (Determination of Value) Rules, 2006 reads as under : Rule 3 : Manner of determination of value. Subject to the provisions of Section 67, the value of taxable service, where the consideration received is not wholly or partly consisting of money, shall be determined by the service provider in the following manner :- (a) the value of such taxable service shall be equivalent to the gross amount charged by the service pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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