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CESTAT : Grants abatement; Free material supplies not includible in "construction services" value
- Value of goods / material supplied 'free of cost' by service recipient for services of "construction of commercial or industrial complex" not includible in computation of taxable value, as has been held by CESTAT LB in Bhayana Builders (P) Ltd;
- Exemption / abatement of 67% on works contract under Notification No. 15/2004-ST cannot be denied for non-inclusion of value of such free supplies; States that Service Tax (Determination of Value) Rules, 2006 flow from legislative empowerment u/s 67 of Finance Act and law does not give authority to read beyond Rules and adapt provisions of said Section for devising formula compatible with sense of equity / harmony;
- If service provider undertakes to procure all material for execution of contract, then such situation would be in conflict with provisions for determining value of taxable services; Observes, "Tax laws provide a legal framework and it is that framework which portrays legislative intent".
- Non-Articulation of a specific inclusion is not a ground to blind oneself to the legal constraints on inclusion of amounts in gross amount of consideration : Mumbai CESTAT