C.C.E.,RAIPUR vs M/S.KARAMJIT SINGH

The Supreme Court addressed the valuation of taxable services under Section 67 of the Finance Act, 1994, specifically regarding whether the value of goods/materials supplied free of cost by service recipients should be included in the gross amount for service tax calculation. The Court upheld the decision of the Larger Bench of the Customs, Excise and Service Tax Appellate Tribunal, which ruled that such value should not be included, thereby favoring the assessees. The Court clarified that the service tax should only be calculated on the amount charged for services rendered, excluding free materials provided by clients.