Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1994 Finance Act Service tax |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Finance Act, 1994 (32 of 1994) |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Finance Act, 1994 – s. 65(105)(zzq) and 67 – Service tax – On construction services – Valuation of taxable service – By Notification dated 10.9.2004, service tax was to be calculated on the value equivalent to 33% of the ‘gross amount charged’ from any person by such commercial concern for providing taxable service – This Notification was further amended by Notification dated 1.3.2005 whereby it was explained that ‘gross amount charged’ shall include the value of goods and materials supplied and provided or used by the provider of construction service for providing such service – In the construction projects undertaken by the assessees, some of the materials were provided by the service recipients – Assessee paid the service tax @33% of the gross amount charged from the service recipients – Revenue demanded that value of such materials, even when supplied or provided free, should be included while calculating the ‘gross value’ and 33% thereof should be treated as value for the purpose of levying service tax – Held: In respect of goods/ materials supplied by the service recipient, no service is provided by the assessee/service provider – Therefore, the value of goods/ material that is provided by the service recipient free of charge is not to be included while arriving at the ‘gross amount’ as no price has been charged by the service provider from service recipient – Goods/materials supplied free, cannot also be called ‘form of payment’ as explained in Explanation (c) to s.67. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2018 INSC 172 |
Petitioner | Commissioner Of Service Tax Etc. |
Respondent | M/s. Bhayana Builders (p) Ltd. Etc. |
SCR | [2018] 1 S.C.R. 1128 |
Judgement Date | 2018-02-19 |
Case Number | 1335 |
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