Separately charged service tax excluded from works contract value for composition, leaving no substantial question of law.

For works contract sales under the Maharashtra Value Added Tax Act, separately charged service tax in the invoice was treated as outside the contract value for composition purposes for periods before 1 April 2015. The Tribunal had followed its earlier view that service tax does not form part of sale price, and the State had accepted that position through a Trade Circular requiring uniform treatment across assessees. In that setting, the proposed question was treated as academic, no substantial question of law arose, and the appeal was not entertained.

---

---

Issues: Whether, for determining the composition amount in respect of works contract sales, service tax charged separately in the invoice is to be included in the total contract value.

Analysis: The appeal arose under Section 27 of the Maharashtra Value Added Tax Act, 2002 and concerned the treatment of separately collected service tax for the period prior to 1 April 2015. The Tribunal had followed its earlier decision that such service tax does not form part of sale price and had relied on the Trade Circular by which the State accepted that view for prior periods. Once the State had accepted the Tribunal's view and instructed uniform treatment across assessees, no contrary stand could be taken in the present matter. In that situation, the proposed question no longer required adjudication on merits and did not give rise to a substantial question of law.

Conclusion: The issue was held to be academic and no substantial question of law arose; the appeal was not entertained.

---