No Service Tax is Applicable on Free Supply Material to CISF: CESTAT

The CESTAT ruled that no service tax is applicable on free supply of materials to the Central Industrial Security Force (CISF). The case concerned a company that had provided materials to the CISF free of charge and whether service tax should apply. The tribunal concluded that since there was no consideration for the supply of materials, no service tax could be levied. This decision is important for businesses that provide free supplies to government agencies or other organizations, clarifying that such transactions do not attract service tax under the GST regime.