2013 (12) TMI 1533 - AT - Service Tax

Appellate Tribunal CESTAT Bangalore Quashes Adjudication Order on Taxable Service Value

The Appellate Tribunal CESTAT Bangalore allowed the appeal, quashing the adjudication order regarding the inclusion of the value of diesel and explosives ... Scope of section 67 - Valuation - service tax, interests and penalties is predicated on the assumption by Revenue that the value of diesel and explosives supplied free of cost by the service recipient, for having provided the taxable ‘Site Formation and Clearance’ service must be included as a part of gross consideration received for computation of the liability of tax u/s 67 of the FA, 1994 - Held that: - following the judgement of the the same appellant and on the identical issue in the case of S.V. Engineering Constructions Versus C.C.E. &S. T., Guntur [2013 (12) TMI 1598 - CESTAT, HYDERABAD], where an identical issue as presented in the appeal was also considered by a Ld. Divisional Bench of the Tribunal in Karamjeet Singh & Co. Ltd. Vs. C.C.E., Raipur, [2013 (12) TMI 434 - CESTAT NEW DELHI], in which the Tribunal following the judgement of the Honble High Court of Delhi in Intercontinental Consultants & Technocrats Pvt. Ltd. Vs. Union of India, [2012 (12) TMI 150 - DELHI HIGH COURT] held that the value of diesel supplied free of cost by a service recipient to the appellant/service provider for providing the taxable site formation and clearance, excavation and earthmoving and demolition service would not be a component of the gross value charged for the service provided for computation of tax under Section 67 of the Act and the appeal was allowed by quashing adjudication order - adjudication order quashed - appeal allowed. The Appellate Tribunal CESTAT Bangalore allowed the appeal, quashing the adjudication order dated 27.12.2011 regarding the inclusion of the value of diesel and explosives in the taxable 'Site Formation and Clearance' service. The appeal was disposed of without costs.