𝗖𝗘𝗦𝗧𝗔𝗧 𝗛𝘆𝗱𝗲𝗿𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗙𝗿𝗲𝗲 𝗦𝘂𝗽𝗽𝗹𝘆 𝗼𝗳 𝗠𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝘀 📢 The Tribunal ruled:

"Free supply of material from the service receiver cannot be added to the appellant’s gross turnover, as upheld by the Supreme Court."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Kasukurthi Sujatha, a works contractor engaged in laying pipelines, optical fiber lines, and construction work for government bodies and companies.

𝗜𝘀𝘀𝘂𝗲: The appellant faced a service tax demand under "Commercial or Industrial Construction Service" (CICS) and "Works Contract Service" (WCS) for the period 2005-06 to 2009-10.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that work performed for GAIL prior to 01.06.2007 was not taxable, and the appellant was entitled to the composition scheme. Non-commercial construction activities, such as building fire stations, were exempt from service tax.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Kasukurthi Sujatha vs. Commissioner of Central Excise & Service Tax 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 20158 of 2015 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 29 February 2024

This ruling clarifies that materials supplied at no cost by the recipient are not taxable as part of the contractor's gross turnover.