2022 (6) TMI 1262

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....Radhe Tallo, Authorized Representative for the Department ORDER The sole issue involved in this appeal is as to whether the free supply of materials namely, cement and steel by the appellant to the contractor would be included in the value of service provided by the contractor engaged for construction work in the appellant factory. 2. The Adjudicating Authority and the Appellate Authority....

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....levant paragraphs 15 and 16, which deal with the issue are as under: "15. It was argued that payment received in 'any form' and 'any amount credited or debited, as the case may be...' is to be included for the purposes of arriving at gross amount charges and is leviable to pay service tax. On that basis, it was sought to argue that the value of goods/materials supplied free is a form of p....

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....justments were made. Likewise, the words, 'any amount credited or debited, as the case may be', to any account whether called 'suspense account or by any other name, in the books of accounts of a person liable to pay service tax' would not include the value of the goods supplied free as no amount was credited or debited in any account. In fact, this last portion is related to the debit or credit o....

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.... 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....