Valuation of Supply — In the instant case, there are two issues to be decided by us viz:-
Whether the supply of service by the Appellant to the commuters is a facilitation of transport service by BMTC to the commuters?
Whether the value of the bus passes distributed by the Appellant to the commuters is to be included in the value of the facilitation charges?
Held that— we agree with the ruling given by the lower Authority and hold that the service provided by the Appellant in arranging the transportation of the employees is not rendered in the capacity of an intermediary and is not a facilitation service between BMTC and the commuters. The service of transporting the employees of the corporate clients of the International Tech Park is rendered by the Appellant on his own account on a principal to principal basis for a consideration.
The bus pass is only a contract of carriage. A contract is not property, but only a promise supported by consideration. Thus, the bus pass is not an actionable claim as defined under Transfer of Property Act. It is only an instrument accepted as consideration/part consideration while purchasing the service from the Appellant. Therefore, we do not agree with the claim of the Appellant that the bus pass is an actionable claim not liable to GST. We agree with the ruling given by the lower Authority and hold that by virtue of section 15 of the CGST Act, the value of the service supplied by the Appellants will include the value of the bus passes as well as the facilitation charges. — Ascendas Services (India) Pvt. Ltd., In Re…  21 TAXLOK.COM 148 (AAAR-Karnataka)