service tax on supply of tangible goods

[vijay reddy]

is service tax leviable on 'supply of tangible goods to the contractor who is performing the works contract which is exempted under Mega Exemption Notification 25/2012-ST'?(its just like a sub contract for supply of tangible goods) if ST is not liable then please provide the case law.

AI Summary

Service Tax Applies to Supply of Tangible Goods, Not Exempt Under Mega Exemption Notification 25/2012-ST. A forum participant inquired about the applicability of service tax on the supply of tangible goods to a contractor performing an exempt works contract under Mega Exemption Notification 25/2012-ST. The consensus among respondents was that the supply of tangible goods does not qualify for exemption under this notification, as it is not considered a 'Works Contract Service.' One respondent noted that such transactions might instead attract VAT, further clarifying that exemptions apply to sub-contractors engaged in works contracts, not to the supply of tangible goods.