Tribunal rules in favor of assessee on multiple issues, remands for further adjudication.

The Tribunal ruled in favor of the assessee on all three issues, setting aside the impugned order and remanding the matters for further adjudication based on specific directions provided in each case. The inclusion of free material in the works contract cost was disputed, with the Tribunal deciding in favor of the assessee. The attempt to switch to 'Works Contract' for an ongoing contract was remanded for de novo adjudication. The denial of exemption to services provided to the SEZ Unit was also set aside for reevaluation based on the submission of necessary approval.

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Issues:
1. Inclusion of free of cost material in works contract cost.
2. Switching to 'Works Contract' for ongoing contract as on 01.06.2007.
3. Denial of exemption to services provided to the SEZ Unit.

Analysis:
1. The appeal involves a dispute regarding the inclusion of free material provided by the service receiver in the works contract cost. The assessee argued that the material supplied without any cost should not be included. Citing precedents, the Tribunal decided in favor of the assessee, setting aside the impugned order and allowing their claim.

2. The next issue pertains to the assessee's attempt to switch to 'Works Contract' for an ongoing contract as of 01.06.2007. The lower authorities denied this switch due to the Composition Scheme for Payment of Service Tax Rules, 2007. Referring to previous cases, the Tribunal remanded the matter to the adjudicating authority for de novo adjudication with specific directions regarding the classification of services and the availability of exemptions.

3. The final grievance concerns the denial of exemption to services provided to the SEZ Unit. The Tribunal noted that the exemption under Notification No. 4/2004-ST dated 31.03.2004 required approval from the SEZ developer/unit. Although the approval was submitted by the assessee, the lower authorities did not consider it. The Tribunal set aside the impugned order and remanded the issue to the adjudicating authority for a fresh examination of the approval and a decision after providing the assessee with a reasonable opportunity to present necessary evidence.

In conclusion, the Tribunal ruled in favor of the assessee on all three issues, setting aside the impugned order and remanding the matters for further adjudication based on the specific directions provided in each case.

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