Composition scheme interpretation under MVAT remains open on exclusion of separately charged service tax and contract value computation.

The Bombay High Court admitted an appeal on substantial questions of law concerning the composition scheme under Section 42(3) of the Maharashtra Value Added Tax Act, 2002. The issues framed concerned whether separately charged service tax could be excluded from the total contract value for composition purposes, whether any further deduction was permissible, and whether the definition of sales price under Section 2(25) could be used to construe total contract value under the composition provision. No merits determination was made, and the legal questions remain open for hearing.

---

---

Issues: No substantive issue was decided; the appeal was admitted on substantial questions of law concerning the interpretation of the composition scheme under Section 42(3) of the Maharashtra Value Added Tax Act, 2002 and the relevance of the separately charged service tax in computing total contract value.

Analysis: The order records that, after hearing both sides and perusing the Tribunal's order, the Court found that the appeal raised substantial questions of law. It therefore admitted the appeal and framed four questions relating to whether separately charged service tax could be excluded from total contract value for the purpose of composition under Section 42(3), whether any further deduction was permissible, and whether the definition of sales price under Section 2(25) could be used while construing total contract value under the composition provision.

Conclusion: No merits determination was rendered; the legal questions were admitted for hearing and remain open.

---