𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗙𝗿𝗲𝗲 𝗦𝘂𝗽𝗽𝗹𝘆 𝗚𝗼𝗼𝗱𝘀 𝗮𝗻𝗱 𝗔𝗯𝗮𝘁𝗲𝗺𝗲𝗻𝘁 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Cost of free supply goods provided by the service recipient to the service provider is neither an amount ‘charged’ by the service provider nor can it be regarded as consideration for the service provided. The benefit of abatement of 67% is allowable."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s. Indiana Minerals 𝗜𝘀𝘀𝘂𝗲: Free supply materials cannot be included in taxable value; abatement of 67% under Notification No. 1/2006-ST remains valid.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal, citing M/s. Bhayana Builders (P) Ltd., ruled that free supplies are not part of taxable value under Section 67 of the Finance Act, 1994. Service tax under Notification No. 1/2006-ST applies only to 33% of the charged amount, excluding free supplies. The demand was set aside, and the appeal allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Indiana Minerals Vs Commissioner of Central Excise (Appeals) 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 40837 of 2013-DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 07 March 2023 📜 This ruling reaffirms that free supply materials cannot be included in the taxable value, preserving the right to abatement under service tax provisions.