Is performance exgratia paid to service provider liable to service tax

No. 

Refer: AMR India Ltd. v. CCE & ST – (2016) 42 STR 329 (Tri. – Bang.)

The Tribunal held that the free supply of items provided by service recipient of site formation service could not be added to assessable value of service to levy service tax. It further held that the bonus given to the assessee by service recipient for efficient use of diesel and explosives could not be added to value of service as the same was not known at time of performance of service and was calculated subsequent to completion of service and it was more in nature of prize money for good performance and in no way linked to value of services.

Thanks for the reply sir. The referred case is for the period March 2008 to March 2012. is the  same applicable even after July 2012

Its the latest judgement awarded in October 2016. Not come across any other notifications, in this regard.