Case Law Details
Deep Construction Company Vs C.C.E. & S.T. (CESTAT Ahmedabad)
CESTAT Ahmedabad held that the value of free supplies cannot be included in the gross amount charged for the purpose of levy of service tax.
Facts- This appeal has been filed by Deep Construction Company against demand of service tax and interest and imposition of penalty under Section 76 & 77 of the Finance Act, 1994. The appeal has also been filed by revenue against non-imposition of penalty under Section 78 of the Finance Act, 1994 and dropping of demand to the extent of Rs. 48,26,850/-.
Notably, the demand has been confirmed by denying the benefit of notification no.1/2006-ST dated 01.03.2006 on the ground that the appellant has not included the value of free supply given by the service recipient.
Conclusion- The Hon’ble Apex Court in the case of BHAYANA BUILDERS (P) LTD. has held that the value of free supplies cannot be included in the gross amount charged for the purpose of levy of service tax.
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