https://www.taxtmi.com/caselaws?id=444941 For construction services, the value of cement and TMT bars supplied free of cost by the service recipient was not includible in the assessable value for service tax, because valuation is confined to the consideration actually charged under the contract and not the value of free supplies. The settled Supreme Court principle on gross amount charged governed the computation, and the notification-based valuation mechanism did not justify adding such free materials. As the service tax demand was unsustainable on valuation, the consequential demand of interest and penalty also could not survive. en-us Mon, 26 Jun 2023 00:00:00 +0530 Fri, 27 Oct 2023 09:44:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444941 For construction services, the value of cement and TMT bars supplied free of cost by the service recipient was not includible in the assessable value for service tax, because valuation is confined to the consideration actually charged under the contract and not the value of free supplies. The settled Supreme Court principle on gross amount charged governed the computation, and the notification-based valuation mechanism did not justify adding such free materials. As the service tax demand was unsustainable on valuation, the consequential demand of interest and penalty also could not survive. Case-Laws Service Tax Mon, 26 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444941