https://www.taxtmi.com/caselaws?id=262832 The SC ruled that service tax cannot be levied on indivisible works contracts prior to 1.6.2007, when the Finance Act, 2007 expressly made such contracts liable to service tax. The court held that works contracts are distinct from service contracts simpliciter and must be taxed separately. The original Finance Act, 1994's charging section referred only to service contracts without composite elements. The court noted absence of proper valuation rules and machinery provisions to assess service tax on composite works contracts. The Finance Minister's 2007 speech specifically acknowledged the need to introduce service tax on works contracts, confirming they were previously non-taxable. Decision favored assessees. en-us Thu, 20 Aug 2015 00:00:00 +0530 Fri, 30 May 2025 15:41:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=262832 The SC ruled that service tax cannot be levied on indivisible works contracts prior to 1.6.2007, when the Finance Act, 2007 expressly made such contracts liable to service tax. The court held that works contracts are distinct from service contracts simpliciter and must be taxed separately. The original Finance Act, 1994's charging section referred only to service contracts without composite elements. The court noted absence of proper valuation rules and machinery provisions to assess service tax on composite works contracts. The Finance Minister's 2007 speech specifically acknowledged the need to introduce service tax on works contracts, confirming they were previously non-taxable. Decision favored assessees. Case-Laws Service Tax Thu, 20 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=262832