https://www.taxtmi.com/caselaws?id=767514 CESTAT New Delhi held that the value of free diesel provided to service provider need not be included in taxable value for service tax calculation under reverse charge mechanism. Following Supreme Court precedent in Bhayana Builders case, free supplies by construction service recipient do not constitute non-monetary consideration to service provider nor form part of gross amount charged. Court found notifications do not mandate inclusion of free diesel value in service tax computation. However, matter remanded to original authorities for proper quantification of differential duty under exemption notification 34/2004-ST, with directions for recalculation and two personal hearings. Appeal allowed by way of remand. en-us Mon, 03 Mar 2025 00:00:00 +0530 Thu, 20 Mar 2025 08:21:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767514 CESTAT New Delhi held that the value of free diesel provided to service provider need not be included in taxable value for service tax calculation under reverse charge mechanism. Following Supreme Court precedent in Bhayana Builders case, free supplies by construction service recipient do not constitute non-monetary consideration to service provider nor form part of gross amount charged. Court found notifications do not mandate inclusion of free diesel value in service tax computation. However, matter remanded to original authorities for proper quantification of differential duty under exemption notification 34/2004-ST, with directions for recalculation and two personal hearings. Appeal allowed by way of remand. Case-Laws Service Tax Mon, 03 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767514