TMI Blog2012 (7) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... lication is non-maintainable. Value of such taxable service - electricity is supplied free of cost by the service receiver – Held that:- electricity is required for rendering the service of operation and maintenance of the plant, then the cost of supply of electricity is a consideration for the service rendered and such cost will have to be included in the value of the taxable services rendered. Appellant directed to make a pre-deposit of Rs.1.00 Crores. - ST/324/09 - S/563/2011/CSTB/C-I - Dated:- 16-11-2011 - Ashok Jindal, P R Chandrasekharan, JJ. For Appellant: Mr Bharat Raichandani, Adv. For Respondent: Mr Y K Agarwal, Addl. Comm. (AR) Per: P R Chandrasekharan: 1. The appeal, miscellaneous application and stay applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with interest thereon under section 75. The Ld. adjudicating authority also imposed penalties on the appellant under the provisions of section 76, 77 78 of the Act. Hence the appellants are before us. 3. The Ld. Counsel for the appellant submits that they have discharged the service tax on the consideration received by them for the services rendered from their clients. They have not charged anything for the supply of electricity. AS per section 67 of the Act, service tax is liable to be paid on the gross amounts charged for the services rendered and since they have not charged any amounts towards electricity supplied, they are not liable to pay service tax on the cost of electricity supplied free by the clients. The Ld. Counsel relies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was never a point for decision before the adjudicating authority and the only point for decision was the valuation of the services rendered. Any change in classification can only be prospective and the issue has to be raised before the appropriate authority for consideration and decision. Therefore, we dismiss the miscellaneous application as non-maintainable. 6. As regards the reliance placed by the appellants on Moriroku UT India (P) Ltd. case cited supra, the issue pertains to sales tax and on what value the said tax can be levied. The apex Court held that sales tax is leviable on the consideration received for the sale. In a case where toolings and moulds are supplied by the customers free of cost to the seller for manufacturing auto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a before the said authority that they are not liable to pay service tax under the said category. The only contention before the adjudicating authority was whether they are liable to pay service tax on the cost of electricity supplied free by their clients and there was no dispute regarding the classification of services. Therefore, the case laws cited by the appellants does not help the cause of the appellants in any way. 6.1 Section 67 of the Finance Act, 1994 reads as under:- 67. Valuation of taxable services for charging service tax.- (1) Subject to the provisions of this Chapter, where service tax is chargeable on any taxable service with reference to its value, then such value shall - (i) in a case where the provision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its numismatic value; (c) "gross amount charged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. Rule 3 of the Service Tax (Determination of Value) Rules, 2006 reads as under:- 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, sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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