Free Material Supplied by NTPC for Maintenance Services Cannot Be Included in Gross Value for Service Tax Abatement: CESTAT

CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) ruled that "free material supplied by NTPC for maintenance services cannot be included in gross value for service tax abatement." Abatement allows a reduced taxable value for service tax by excluding the value of goods used. The tribunal clarified that when materials like spare parts are provided free of cost by the service recipient (NTPC) for maintenance services, their value should not be added to the service provider's gross value for calculating service tax or eligibility for abatement.