Case Law Details
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 recipient, M/s. GSPC Gas Company Limited.
1. Background and Allegations:
Aneri Construction Pvt. Limited offered services in various categories, including Erection, Commissioning and Installation Service, Commercial and Industrial Construction Services, Maintenance and Repair Services, and more. During a financial audit, the tax department observed that Aneri Construction had not included the value of materials supplied by M/s. GSPC Gas Company Limited in their assessable value for service tax calculation. A show-cause notice was issued, demanding Rs. 61,06,366 in service tax under Section 73(1) of the Finance Act, 1994.
2. Appellant’s Argument:
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