Chlorine Supplied Free by Service Recipients not Part of Gross Amount Charged for Service Tax Calculation: CESTAT

The CESTAT has ruled that chlorine supplied free of cost by service recipients cannot be included in the gross amount charged for service tax calculation. The tribunal observed that since the service provider did not charge for the chlorine, its value cannot be added to the taxable amount for service tax. This decision aligns with the principle that service tax is levied only on the consideration actually received for the service provided. The ruling clarifies the valuation of services where some inputs are provided free of cost by the client, offering significant relief to businesses and ensuring that taxes are not levied on non-monetary transactions.