Gross amount charged excludes free supplies by the service recipient for notification benefit under service tax law.

The scope of "gross amount charged" under Notification No. 15/2004-ST, as amended by Notification No. 4/2005-ST, was examined in relation to free supply material provided by the service recipient. The Larger Bench position treated such free supplies as outside the gross amount charged for the notification, including after insertion of the Explanation. On that basis, the value of free supplies was not includible in the taxable base for availing the notification benefit, and the Revenue's challenge failed.

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Issues: Whether the value of free supply material provided by the service recipient was includible in the gross amount charged for availing the benefit of Notification No. 15/2004-ST, as amended by Notification No. 4/2005-ST.

Analysis: The dispute turned on the scope of the expression "gross amount charged" under Notification No. 15/2004-ST and the effect of the Explanation introduced by Notification No. 4/2005-ST. The issue was treated as settled by the Larger Bench, which held that free supplies made by the service recipient do not form part of the gross amount charged for this notification, including the amended Explanation.

Conclusion: The value of free supplies was not includible, and the Revenue's challenge failed.

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