2025 (8) TMI 1402

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....gether and are disposed of by this common order. Appeal No. OIA No. OIO Nos SCN No and date Period involved Service Tax and penalties disputed ST/40074/2016 355/2015 (CXA-II) dated 27.10.2015 25/2014-ST dtd 27.08.2014 13/2013- ST dtd. 01.07.2013 07/2011 to 07/2012 Rs.11,124/- u/S 73(1) & Rs.2,000/- u/S 76 ST/41970/2016 301/2016 (CXA-II) dated 11.08.2016 16&17/2015 ST dtd 30.09.2015 16/2014- AC dtd 10.10.2014 & 10/2015- ST dtd 15.04.2015 08/2012 to 03/2014 Rs.3,36,874/- u/S 73(1) & Rs.33,687/- u/S 76 (1) 2. Brief facts are that the Appellant is a registered service provider providing the service of treating the water for industrial production to M/s ONGC & M/s NTPC as per the parameter....

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....for the relevant period. 4. Shri. N. Satyanarayana, Ld. Authorised Representative, reiterated the findings of the appellate authority. 5. Heard both sides, perused the appeal records and the citation submitted as relied upon. 6. We find that the sole issue in dispute is 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' charged by the service provider for the purposes of Section 67 of the Finance Act, 1994 and be subjected to service tax. 7. Admittedly, the reliance placed by the appellant on the decision in Bhayana Builders Pvt Ltd v CST, Delhi, 2013 (32) STR 49 (Tri-LB), was negatived by the appellate authority o....

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....s the total amount charged without deduction of any expenses. Merely by use of the word "gross" the Department does not get any jurisdiction to go beyond the contract value to arrive at the value of taxable services. Further, by the use of the word "charged", it is clear that the same refers to the amount billed by the service provider to the service receiver. Therefore, in terms of Section 67, unless an amount is charged by the service provider to the service recipient, it does not enter into the equation for determining the value on which service tax is payable. b. The amount charged should be for "for such service provided" : Section 67 clearly indicates that the gross amount charged by the service provider has to be for the ser....

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....' by the service provider/assessee. Again, obviously, in respect of the goods/materials supplied by the service recipient, no service is provided by the assessee/service provider.Explanation 3 to sub-section (1) of Section 67 removes any doubt by clarifying that the gross amount charged for the taxable service shall include the amount received towards the taxable service before, during or after provision of such service, implying thereby that where no amount is charged that has not to be included in respect of such materials/goods which are supplied by the service recipient, naturally, no amount is received by the service provider/assessee. Though, sub-section (4) of Section 67 states that the value shall be determined in such manner as may....