2014 (9) TMI 413

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....vices' to their client viz., J K Paper Ltd (herein after referred to as 'JKPL' for sake of brevity), under a contract. The assessee had raised the bills for changing for such services & received total amount of Rs. 6,87,19,916/- during the period from November 2005 to Match 2009 and paid Service Tax on abated value after, availing/claiming the benefit of abatement @ 67% of the gross amount of Rs. 6.87.19,916/- charged for services provided under Notification No. 15/2004-S.T. dated 10.9.2004 as amended and Notification No. 1/2006-ST dated 01.03.2006. On verification of copy of the contract with the client i.e., JKPL, it was noticed that the major materials used while providing service of construction i.e., Cement and Reinforcement Steel were....

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....from November 2005 to March 2009 as detailed in 'Annexure A' attached to the impugned notice. 3. In addition to the above, it was also noticed that the appellant had not discharged the Service Tax liability on the GTA services received by them for transportation of materials and the said Service Tax liability was calculated as Rs. 28,041/-. 4. The lower authorities issued show cause notice for demand of above said Service Tax liability, interest thereof and for imposition of penalties. The appellant contested the show cause notice as to the inclusion of the value of free supplied materials as incorrect due to the judgement of the Larger Bench of the Tribunal in the case of M/s Bhayana Builders Pvt Ltd  2013(32)STR.49 (Tri. LB) and ac....

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.... the service recipient is includable in the assessable value of the appellant and claiming of benefit of abatement of 67% of the value is to be rejected. In our considered view, these findings of the Adjudicating Authority are incorrect. The value as declared by the appellant for the services rendered by him without inclusion of the value of the free supply of the material is not disputed and the returns filed are accepted by the Dept. 9. We find that the ratio of the Larger Bench decision in the case of M/s Bhayana Builders Pvt Ltd (Supra) is directly applicable in this case. In the said judgement, the Larger Bench has categorically ruled in favour of the assessee that cost of free supply of goods for rendering the services is not includa....