Section 65(25b) when the Value of free of cost supplies is not included in gross amount charged

Value of free of cost supplies made by recipient isn't includible in gross amount charged for abatement purposes

[2015] 57 taxmann.com 219 (New Delhi - CESTAT)

CESTAT, NEW DELHI BENCH

Hindustan Steel Works Construction Ltd.

v.

Commissioner of Central Excise, Raipur

Section 65(25b), read with section 67, of the Finance Act, 1994 - Taxable services - Commercial or Industrial Construction Services - Assessee was engaged in civil construction including Thermal Power Project for NTPC - Service recipient NTPC supplied certain goods such as cement and steel free cost for incorporation in execution of works - Assessee claimed benefit of 67 per cent abatement under Notification No. 1/2006-S.T. - Department argued that value of free supplies by service recipient would form part of 'gross amount charged' for availment of abatement - HELD : Since this issue stands decided in favour of assessee in Bhayana Builders (P.) Ltd. v. CST [2013] 42 GST 76/38 taxmann.com 221 (New Delhi- Cestat) (LB), demand was set aside [Paras 5 and 6] [In favour of assessee]