M/S Corrtech International Pvt.Ltd vs Commissioner Of Service Tax, Ahmedabad

Customs Excise and Service Tax Appellate Tribunal3 September 2015

CitationAppeal No.ST/23/2008-DB

Ratio decidendi

The rule this decision rests on

Where a service provider is supplied goods and materials free of cost by the service recipient, the value of those goods and materials is neither monetary nor non-monetary consideration paid by or flowing from the service recipient, and so does not form part of the taxable value or gross amount charged under Section 67 of the Finance Act, 1994; the demand premised on including such value cannot be sustained.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

In The Customs, Excise & Service Tax Appellate TribunalWest Zonal Bench At Ahmedabad

Appeal No.ST/23/2008-DB [Arising out of OIO No.STC/16/Commr/Ahd/207-2008, dt.12.12.2007, passed by Commissioner of Central Excise & Service Tax, Ahmedabad]

M/s Corrtech International Pvt.Ltd. Appellant

Commissioner of Service Tax, Ahmedabad Respondent

Represented by:

For Appellant: Shri Jigar Shah, Advocate For Respondent: Dr. J. Nagori, Authorised Representative

For approval and signature:

Honble Mr. P.K. Das, Member (Judicial) Honble Mr. P.M. Saleem, Member (Technical)

1. Whether Press Reporters may be allowed to see the No Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2. Whether it should be released under Rule 27 of the No CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3. Whether their Lordships wish to see the fair copy of Seen the order?

4. Whether order is to be circulated to the Departmental Yes authorities?

CORAM:

HONBLE MR. P.K. DAS, MEMBER (JUDICIAL) HONBLE MR. P.M. SALEEM, MEMBER (TECHNICAL)

Date of Hearing/Decision: 03.09.2015

Order No. A/11251/2015, dt.03.09.2015

Per: P.K. Das

Heard both the sides and perused the records.

2. The issue involved in this appeal is that the Appellants were engaged in providing services of laying long distance pipelines for transportation of oil and gas. They availed benefit of Notification No.15/2004-ST, dt.10.09.2004 as amended. The demand of Service Tax was raised as they have not included the value of the pipes and other materials provided by the service recipient viz. M/s Gas Authority of India Ltd and M/s Mahanagar Gas Ltd etc. We find that the issue is no more res integra in view of the Larger Bench decision of the Tribunal in the case of Bhayana Builders (P) Ltd Vs CST Delhi 2013 (32) STR 49 (Tri-LB), wherein it has been held that the value of goods and materials supplied free of cost by a service recipient to the provider of the taxable construction service, being neither monetary or non-monetary consideration paid by or flowing from the service recipient, accruing to the benefit of service provider, would be outside the taxable value or the gross amount charged, within the meaning of the later expression in Section 67 of the Finance Act, 1994.

3. In view of the said decision of Larger Bench, the impugned order is set aside and the appeal filed by the Appellant is allowed.

(Dictated & Pronounced in Court)

(P.M. Saleem) (P.K. Das) Member (Technical) Member (Judicial)

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