GURMEHAR CONSTRUCTION Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is filed by M/s. Gurmehar Construction Village Amaghat, Distt. Raigarh (hereinafter referred to as the Appellants) against the Order -in -Original No. Commissioner/RPR/50/2008, dated 11 -6 -2008. In terms of the said Order -in -Original the Commissioner had: -

(2.) THE learned DR hesitatingly conceded that the issue of free supplies is decided in the Appellants' favour by the CESTAT Larger Bench in the case of Bhayana Builders referred to earlier. He however stated that interest on the Cenvat credit wrongly taken is chargeable from the date on which it was taken even if it was not utilized before reversal and referred to the Apex Court judgment in case of U.O.I. v. Indo Swift Laboratories - : 2011 (265) E.L.T. 3 (S.C.) : 2012 (25) S.T.R. 184 (S.C.) He further added that the Karnataka High Court judgment is distinguishable as has been done in the case of Balmer Lawrie & Co. Ltd. v. Commissioner of Central Excise - : 2014 (301) E.L.T. 573 (Tri. -Mum.) and that the said judgment has also been held per incuriam by CESTAT in the case of M/s. Dr. Reddy's Laboratories Ltd. v. Commissioner of Central Excise, Hyderabad - : 2013 -TIOL -934 -CESTAT -Bang : 2013 (293) E.L.T. 81 (T).

(3.) AS regards the demand of Service Tax on the value of the free supplies of diesel is concerned, the Larger Bench of this Tribunal in the case of M/s. Bhayana Builders Pvt. Ltd. v. Commissioner, Service Tax, Delhi - : 2013 (32) S.T.R. 49 (Tri. -LB) has held that the value of free supplies is not includible in the gross consideration received by the Service provider for rendition of taxable service. Consequently the demand of Rs. 78,17,056/ - relating to free supplies of diesel is not sustainable.