𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗙𝗿𝗲𝗲 𝗦𝘂𝗽𝗽𝗹𝗶𝗲𝘀 📢 The Tribunal ruled:

"Value of free supplies of accommodation, traveling, and food expenses would not warrant inclusion while arriving at the gross amount on which service tax is payable."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Niko Resources 𝗜𝘀𝘀𝘂𝗲: The appellant, Niko Resources, received consulting engineering services from outside India and incurred expenses (accommodation, traveling, and food) for engineers on behalf of the service provider during the provision of the service.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal, following Delhi High Court and Supreme Court rulings, held that only the value of services rendered is taxable, excluding free supplies, and allowed the appeal accordingly.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Niko Resources vs. Commissioner of Central Excise & ST, Vadodara-I 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 10042 of 2015-DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 23 February 2024

This ruling confirms that free supplies provided to service providers during the course of their service should not be included in the gross amount for service tax calculation.