TMI Blog2022 (6) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... ue as to whether the cost of material supplied free of cost can be included in the taxable value of service, and is thus applicable to the present case. Appeal allowed - decided in favor of appellant. - SERVICE TAX APPEAL NO. 50402 of 2021 - FINAL ORDER NO. 50529/2022 - Dated:- 16-6-2022 - MR. DILIP GUPTA, PRESIDENT AND MR. RAJU, MEMBER (TECHNICAL) Shri R. Krishnan, Advocate for the Appellant Shri Radhe Tallo, Authorized Representative for the Department ORDER The sole issue involved in this appeal is as to whether the free supply of materials namely, cement and steel by the appellant to the contractor would be included in the value of service provided by the contractor engaged for construction work in the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the purpose is to include other modes of payments, in whatever form received; be it through cheque, credit card, deduction from account etc. It is in that hue, the provisions mentions that any form of payment by issue of credit notes or debit notes and book adjustment is also to be included. Therefore, the words in any form of payment are by means of issue of credit notes or debit notes and book adjustment. With the supply of free goods/materials by the service recipient, no case is made out that any credit notes or debit notes were issued or any book adjustments were made. Likewise, the words, 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (emphasis supplied) 6. The Commissioner (Appeals) has noticed the aforesaid decision of the Supreme Court in Bhayana Builders, but has distinguished it holding that it would not be applicable to the facts of the case. 7. The Supreme Court had examined this precise issue as to whether the cost of material supplied free of cost can be included in the taxable value of service. The distinction sought to be made by the Commissioner (Appeals) is, therefore, without any basis. 8. Thus, for the reasons stated above the order dated Janu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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