Valuation of Taxable services｜Service Tax ｜Bhayana Builders Case Analysis

This is with reference to the judgment pronounced by Honorable Supreme Court of India in case of Commissioner of Service Tax vs. Bhayana Builders P Ltd dated 19^th February 2019 whereby the apex court has considered/analyzed the arguments given the Revenue legal counsel on the aspect of valuation of taxable services under Service Tax where goods/material is supplied free of cost by the service recipient and dismissed the revenue contention that the value of free supplies not to be included while valuation of taxable services under Service tax under section 67.

Brief facts of the case

• The respondents herein are engaged in the business of construction and, in the process, providing the services known as ‘Commercial or Industrial Construction Service’. This service is leviable to service tax as per the provisions of Section 65(105) (zzq) of the Finance Act, 1994;
• The dispute over here is regarding valuation of taxable service under section 67 of the Finance Act 1994;

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