JUDGMENT :

A.K. Sikri, J.

1. Delay condoned in Diary No. 42349 of 2016.

2. The respondents herein are engaged in the business of construction and, in the process, providing the services known as 'Commercial or Industrial Construction Service'. This service is exigible to service tax as per the provisions of Section 65(105) (zzq) of the Finance Act, 1994 (hereinafter referred to as the 'Act'). The assessees accept that they are covered thereby and, therefore, are paying service tax as well. The dispute, however, is with regard to the valuation of taxable service provided by them. Under Section 67 of the Act deals with such a valuation.

3. It is a matter of common knowledge that for undertaking construction projects, the assessees not only render services, lot of materials/goods are also used in the construction of building or civil structure etc. For valuation of taxable services, the material/goods element has to be excluded. In order to make the things easier for the assessees as well as the Assessing Officers (AOs), the Government issued the Notification No. 15/2004-ST dated September 10, 2004 as per which service tax is to be calculated on the value which is equivalent to 33% of the