2011 (1) TMI 679

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....he Finance Act. The appellants have already deposited an amount of Rs.48,95,119/-, as recorded in the impugned order of Commissioner. 2. After hearing both the sides duly represented by learned advocate, Shri S.K. Sarwal appearing for the appellants and learned DR, Shri Fateh Singh appearing for the Revenue, we find that the appellant is registered with the service tax department for providing construction services and works contract services under Section 65 of the Finance Act, 1994. They were paying the service tax by availing the benefit of exemption Notification No.15/2004-ST dated 10.09.04 and under Notification No.18/2005-ST dated 07.06.05 and Notification No.1/2006-ST dated 01.03.06, by claiming an abatement of 67% from the realiz....

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....e of the taxable services, without including the value of the freely issued goods would defeat the very purpose of the notification. He has referred to the relevant provisions of the Finance Act, 1994 to conclude that the value of any taxable service is the "gross amount charged" by the service provider. The "gross amount charged" includes all components which are loaded in the value of the taxable service including the raw material supplied free by the principle. He has also observed that the notifications in question grant abatement to 67% of the value because it is difficult to take into consideration the value of each and every material utilized for the services. Such abatement cannot be granted, if the value of the raw materials suppli....