Service tax valuation dispute over free supplies in construction led to waiver of pre-deposit and interim stay relief.

In a service tax valuation dispute over commercial and industrial construction service, the appellant sought abatement under Notification No. 15/04-ST and argued that the value of free-supplied cement and steel should not be included in the gross amount charged. The dispute concerned interim relief only, and the merits of the valuation issue were not finally decided. Relying on High Court decisions, the tribunal waived pre-deposit of duty and penalty and allowed the stay petition.

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Issues: Whether the appellant was entitled to waiver of pre-deposit in a service tax dispute concerning inclusion of the value of free supply of cement and steel in the gross amount charged for commercial and industrial construction service.

Analysis: The appellant claimed abatement under Notification No. 15/04-ST and relied on High Court decisions holding that free supplies are not includible in the gross amount charged. The dispute at this stage was limited to interim relief, and the merits of the valuation question were not finally adjudicated.

Outcome: Pre-deposit of duty and penalty was waived and the stay petition was allowed.

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