TaxTMI 
TaxTMI 
2025 (12) TMI 367
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....impugned order), while the department have also preferred an appeal vide Appeal No.ST/1657/2012, against the same OIO, on the grounds that though the Commissioner has rightly held that the cost of the free issued materials viz., Diesel and Explosives received by the appellant has to be included in the gross value of the service, as envisaged under Section 67 of the Finance Act, 1994 read with Service Tax (Determination of Value) Rules, 2006, the orders of the Commissioner treating the cost of free issue materials and bonus as cum- tax value for the purpose of computation of differential amount of Service Tax and thereby reducing the demand of Service Tax by Rs.22,56,120/- does not appears to be legal and proper. 2. The brief facts of the....
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....ideration relying on certain judgments including Cemax Engineers Vs CST [2009 (23) STT 389 (Tri-Bang)], Gulf Oil Corp. Ltd Vs CST, Hyderabad and Larsen and Toubro Ltd [2007 (11) STT 27]. 5. While the learned AR has reiterated the arguments in the OIO, we find that the issue in this regard is already settled by the Hon'ble Apex Court in the case of M/s Bhayana Builders (P) Ltd [2018 (10) GSTL 118 (SC)] and therefore, the value of free material supplied by service recipient cannot be included. We also note that in another judgment in the case of Intercontinental Consultants & Technocrats Pvt Ltd [2018 (10) GSTL 40 (SC)], it was held that value of free diesel and explosives supplied by service recipient cannot be included in the value of se....
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.... also under Cargo Handling Service (CHS). 10. The brief facts are that the appellants were undertaking certain activities like collection, loading, unloading and transportation of rocks from yard to crusher and crusher to various work sites of one M/s Indu Projects Ltd (IPL) to whom they have also provided SFCS. Thus, demand was made based on scrutiny of ST3 returns, copies of Income Tax returns and ledger copies of the appellant, wherein certain amount received from M/s IPL was not disclosed and there was short payment of service tax. The department also noticed that they were collecting service tax on crushing charges, earth work and excavation and other miscellaneous works from M/s IPL in respect of all the work orders and in fact, th....
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....were paying service tax in respect of certain services during certain period supports the contention that they were aware of their obligation under the statutory provisions of the Finance Act and that they have deliberately not paid the service tax applicable thereon. 12. Heard learned AR and perused the records. 13. We find that the short question for determination is whether the amount of service tax is payable on these two services or otherwise. We find that the adjudicating authority has examined these aspects in detail and held that service tax is payable under respective categories. We do not find any reason to differ with him on the classification of these services. On the issue of liability, we do not find any merit in the arg....