https://www.taxtmi.com/caselaws?id=239827 The HC upheld the levy of service tax on the service component of composite contracts involving construction services, rejecting the challenge that Parliament cannot tax materials used in such contracts. It affirmed the validity of bifurcating composite contracts under the 46th Amendment and applying the aspect doctrine for computation. The court held that the notifications providing an optional formula for computing the service portion are valid, non-mandatory, and not arbitrary or violative of Article 14. Assessees may choose to adopt the formula or compute the service value fairly and reasonably. The notifications comply with statutory provisions and do not impose tax on non-service elements. All writ petitions were dismissed, ruling against the assessees. en-us Wed, 13 Nov 2013 00:00:00 +0530 Fri, 01 Aug 2025 17:25:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=239827 The HC upheld the levy of service tax on the service component of composite contracts involving construction services, rejecting the challenge that Parliament cannot tax materials used in such contracts. It affirmed the validity of bifurcating composite contracts under the 46th Amendment and applying the aspect doctrine for computation. The court held that the notifications providing an optional formula for computing the service portion are valid, non-mandatory, and not arbitrary or violative of Article 14. Assessees may choose to adopt the formula or compute the service value fairly and reasonably. The notifications comply with statutory provisions and do not impose tax on non-service elements. All writ petitions were dismissed, ruling against the assessees. Case-Laws Service Tax Wed, 13 Nov 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=239827