Contractual supply of mud engineering services together with...

Contractual supply of mud engineering services together with site-specific chemicals constitutes a composite supply because the goods and services are naturally bundled, necessary for execution, and form an essential, intertwined part of the contractual obligation; separate billing does not alter its nature. The chemicals were custom-prepared and supplied in conjunction with monitoring and injection services to ensure safe, efficient drilling, making services the principal component of a composite transaction. The High Court set aside the orders of the advance ruling authority and its appellate body, leaving fixation of the applicable tax rate to the appropriate authority.