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TMI Blog2018 (7) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... are that the appellant is engaged in providing taxable service under the category of Commercial or Industrial Construction Service to M/s. Shree Ambika Sugars Ltd. It was noticed that the appellant did not discharge service tax under the said category and show cause notice was issued proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue has been decided by the Hon'ble Supreme Court in the case of Commissioner of Service Tax Vs. Bhayana Builders (P) Ltd. vide Civil Appeal Nos. 1335 to 1358 of 2015 dated 19.2.2018. 3. The ld. AR Shri S. Govindarajan reiterated the findings in the impugned order. 4. Heard both sides. 5. The issue that arises for consideration is whether the value of goods and materials supplied free to the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice recipient free of charge is not to be included while arriving at the 'gross amount' simply, because of the reason that no price is charged by the assessee/service provider from the service recipient in respect of such goods/materials. This further gets strengthened from the words „for such service provided or to be provided‟ by the service provider/assessee. Again, obviously, in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner is prescribed which includes the value of free goods/material supplied by the service recipient for determination of the gross value. xxxxx xxxxx xxxxx xxxxx 16. In fact, the definition of "gross amount charged" given in Explanation (c) to Section 67 only provides for the modes of the payment or book adjustments by which the consideration can be discharged by the service recipient to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by the service recipient. Thus, on first principle itself, a value which is not part of the contract between the service provider and the service recipient has no relevance in the determination of the value of taxable services provided by the service provider." 6. Following the same, we are of the view that the demand cannot sustain and requires to be set aside which we hereby do. The appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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