𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗡𝗼𝘁𝗶𝗼𝗻𝗮𝗹 𝗩𝗮𝗹𝘂𝗲 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: "The value of taxable service cannot depend on the value of goods supplied free of cost by the service recipient, and notional charges for equipment usage need not be included in the taxable value."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Dahej Harbour Infrastructure Ltd 𝗜𝘀𝘀𝘂𝗲: The appellant, a subsidiary of Hindalco, used Hindalco’s jetty equipment for cargo handling, charging Rs. 20 per Metric Ton. A show cause notice claimed this charge should be included in the appellant’s taxable service value, alleging non-compliance with service tax liability.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that the taxable value for services must only include contractual charges invoiced and paid, excluding free or notional supplies by the service recipient. Citing CST vs. Bhayana Builders Pvt. Ltd. (2018), the Tribunal found no basis for including notional equipment charges, confirming the appellant's correct service tax discharge.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Dahej Harbour Infrastructure Ltd. vs. Commissioner of Central Excise & ST, Vadodara-II 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 10546 of 2013-DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 13 June 2023 📜 This ruling confirms that only contractual service values are taxable, and free or notional supplies provided by the service recipient should not be included in the taxable amount.