TaxTMI 
TaxTMI 
2018 (11) TMI 228
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....rtain contracts for M/s Hindulco Industries Ltd., Hirakud (Power Project). For execution of contracts, M/s Hindulco Industries Ltd. supplied certain materials free of cost, such as, cement, rods etc, which were to be used by the appellant in the construction works. Such free supply of materials were done as per the terms and conditions between the two parties. For payment of service tax during the disputed period, the appellant claimed the benefit of the exemption under Notification No.15/2004-ST dated 10.09.2004, which was subsequently amended by Notification No.04/05-ST dated 01.03.2005. This Notification was further superseded by Notification No.01/06-ST dated 01.03.2006 without any material change in the wordings. These Notifications gr....
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....w-cause notice. 4. In this connection, we have heard Shri B.N.Chattopadhyay, ld.Consultant for the appellant as well as Shri S.S.Chattopapadhyay, ld.D.R. for the Revenue. 5. The ld.Consultant for the appellant submitted that the service tax demanded in the show-cause notice along with interest, has already been paid by the appellant and the same has not been disputed. But he emphatically submitted that the penalty imposed was not justified and further that no interest would be payable by the appellant since the present issue on merit has been decided in their favour by the Hon'ble Apex Court in the case of Commissioner of Service Tax Vs. Bhayana Builders Pvt. Ltd. : 2018 (10) G.S.T.L. 118 (S.C.). 6. The ld.D.R. for the Revenue, has justi....
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....ct value or the amount actually charged by the service provider to the service recipient for the service rendered. The fact that it is an inclusive definition and may not be exhaustive also does not lead to the conclusion that the contract value can be ignored and the value of free supply goods can be added over and above the contract value to arrive at the value of taxable services. The value of taxable services cannot be dependent on the value of goods supplied free of cost by the service recipient. The service recipient can use any quality of goods and the value of such goods can vary significantly. Such a value, has no bearing on the value of services provided by the service recipient. Thus, on first principle itself, a value which is n....