Value of free supply not includible in gross amount charged for levy of service tax

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 confi...