TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether a contract for manufacture, supply, erection, installation and commissioning of lifts and elevators was a composite contract not liable to be vivisected for levy of service tax, and whether the benefit of Notification No. 12/2003-ST dated 20-6-2003 could be denied on the ground of invoicing requirements.
Analysis: The contract was treated as a single composite arrangement covering supply as well as installation activities. No finding was recorded to dislodge the claim that the agreement could not be split into separate taxable and non-taxable parts. The terms of the contract showed that the transaction was not severable in the manner sought by the revenue. On that basis, the levy could not be imposed by dissecting the contract into independent components, and the precedents on composite contracts not being capable of vivisection were applied.
Conclusion: The contract could not be vivisected for service tax purposes, and the demand of service tax was unsustainable. The appeal was allowed in favour of the assessee.
Ratio Decidendi: A composite contract for supply and installation cannot be split up and subjected to service tax on isolated components when the agreement is inseverable on its terms.
TaxTMI 
