No Service Tax on Material Supplied Free during Construction: CESTAT

Aneri Construction Pvt. Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) The Central Excise and Service Tax Appellate Tribunal (CESTAT) Ahmedabad recently addressed a significant issue regarding the applicability of service tax on materials supplied free of cost by the service recipient during construction. Aneri Construction Pvt. Limited, a registered service provider, had opted for the composition scheme for taxation of service tax under Works Contract service but had not included the value of materials such as steel pipes and valves provided free of cost by the service ...