TaxTMI 
TaxTMI 
2021 (9) TMI 1173
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....No. 14- 16/COMMR/Dr.KNR/CGST & C.EX/MC/2018 dated 07.12.2017 passed by Commissioner of CGST & Central Excise, Mumbai Central. By the said order, the Commissioner has held as under:- "ORDER 1. I determine and confirm the demand of Service Tax of Rs. 33,54,84,537/- (Rs. Thirty Three Crores Fifty Four Lakhs Eighty Four Thousand Five Hundred Thirty Seven only) under Section 73(2) of Finance Act, 1994, (Rs. 13,61,89,309/- with reference to Show Cause Notice Nos.1197/COMMR/2014-15 dated 17.04.2014, Rs. 12,75,87,994/- with reference to SCN No. Commr./36/2014-15 dated 13.04.2015/- and Rs. 7,17,07,234/- with reference to SCN No. Commr/175/2014-15 dated 17.12.2015) being levied on fuel supplied in respect of "Mining Service" against the Noticee....
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....e amount of Rs. 51,95,02,076/- (Rupees Fifty One Crore Ninety Five Lacs Two Thousand Seventy Six only) as the Service Tax liability not paid by them during the period April, 2013 to March 2014 should not be demanded and recovered from them under Section 73(1) of Chapter V of the Finance Act, 1994; ii) interest at the appropriate rate should not be demanded and recovered from them under provisions of Section 75 of the Finance Act, 1994; iii) penalty should not be imposed upon them under Section 76 of the Finance Act, 1994." Show cause notice dated 17.04.2014 sought as to why:- "(i) An amount of Rs. 13,61,89,309/- (Rs. Thirteen Crores Sixty One Lakhs Eighty Nine Thousand Three Hundred and Nine only), as Service Tax liability (alon....
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....ee diesel supplied for providing mining services the assessee has filed this appeal and against dropping of the demand in respect of free diesel attributable to supply of tangible goods, Revenue has filed the appeal. 3.2 Revenue has also filed a miscellaneous application for early hearing of appeal No. ST/86593/2018 on the ground of huge amount of revenue involved in the case. Since the appeal itself has been taken up for hearing, the early hearing application filed by Revenue is infructuous and is accordingly dismissed. 3.3 We have heard Shri V. Sridharan, Senior Advocate, for the assessee and Shri Nitin M. Tagade, Joint Commissioner, Authorised Representative, for Revenue. 4.1 We have considered the impugned order along with the ....
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.... The effect of amendment was that subclauses (ii) and (iii) were inserted in clause (a) in the definition of consideration contained in the explanation part appended to Section 67 ibid. The amended provisions include inter alia, any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, subject to the fulfilment of the prescribed conditions. In the present case, it is an admitted fact on record that the appellant had never charged any cost of fuel to M/s. ONGC over and above the amount claimed by it for providing the taxable service. Since, M/s. ONGC was not required to make payment of fuel to the appellant, its value cannot be added to the taxable ....
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....s to be included in computation of gross amount charged by the service provider, for valuation of taxable service. For valuation of taxable service, provision is made in Section 67 of the Act which enumerates that it would be 'the gross amount charged by the service provider for such service provided or to be provided by him'. Whether the value of materials/goods supplied free of cost by the service recipient to the service provider/assessee is to be included to arrive at the 'gross amount', or not is the poser. On this aspect, there is no difference in amended Section 67 from unamended Section 67 of the Act and the parties were at ad idem to this extent. 12. On a reading of the above definition, it is 12. clear that both prior and....
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....ged which has no nexus with the taxable service and is not a consideration for the service provided does not become part of the value which is taxable under Section 67. The cost of free supply goods provided by the service recipient to the service provider is neither an amount "charged" by the service provider nor can it be regarded as a consideration for the service provided by the service provider. In fact, it has no nexus whatsoever with the taxable services for which value is sought to be determined. 13. A plain meaning of the expression 'the 13. gross amount charged by the service provider for such service provided or to be provided by him' would lead to the obvious conclusion that the value of goods/material that is provided ....