CESTAT directs that service recipient is liable to include free supply materials in Gross value of works contract

Kirti Infrastructures Ltd Vs C.C.E. & S.T (CESTAT Ahmedabad) FACTS- The appellant at the outset submits that with effect from 01.06.2007, the new service namely Works Contract Service was made effective , classification of aforesaid service would undergone a change in case of long term contracts even though part of the service was classified under respective taxable service prior to 01.06.2007. This is because the works contract describes the nature of activity more specifically and therefore as per the provision of Section 65A of the Finance Act, 1994 it would be appropriate classificati...