TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
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 composite construction contracts involving supply of goods and services could be classified under Works Contract Service after 01.06.2007 and whether the appellant was entitled to discharge service tax under the composition scheme for such ongoing projects.
Analysis: The contracts were found to be composite in nature and not capable of vivisection into separate service and goods elements for taxation under service categories applicable to service contracts simpliciter. In light of the binding principle that such non-vivisectible composite works contracts became taxable only as Works Contract Service from 01.06.2007, the demand raised by treating the same activity as Commercial or Industrial Construction Service was unsustainable. The exercise of the composition option was also accepted for ongoing projects, and the absence of a particular intimation format was not treated as fatal where the returns and payment pattern reflected the option.
Conclusion: The classification made by Revenue was rejected and the appellant was held entitled to tax the composite contracts under Works Contract Service with the benefit of the composition scheme.
Final Conclusion: The impugned demand, along with the consequential confirmation of tax, was set aside and the appeal succeeded.
Ratio Decidendi: A composite works contract involving supply of goods and services cannot be vivisected for levy under service categories applicable to service contracts simpliciter, and after 01.06.2007 such contracts are to be taxed as Works Contract Service with the composition benefit available where the scheme conditions are otherwise satisfied.
TaxTMI 
TaxTMI 
