https://www.taxtmi.com/caselaws?id=2576 In a composite contract with identifiable service and sale elements, only the taxable sale component can be brought to VAT, while the service component remains outside sales tax. The Court distinguished a purely indivisible works contract from a contract where concept development, design and related services can be separately identified. It held that the constitutional fiction in Article 366(29A) cannot be expanded beyond its express scope, and that service tax under the Finance Act, 1994 and VAT operate in distinct fields. On that basis, charges for conceptualisation and design services were not includible in the VAT taxable value, and the assessment approach taxing the entire composite value was set aside. en-us Wed, 09 Jan 2008 00:00:00 +0530 Fri, 12 Sep 2025 11:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2576 In a composite contract with identifiable service and sale elements, only the taxable sale component can be brought to VAT, while the service component remains outside sales tax. The Court distinguished a purely indivisible works contract from a contract where concept development, design and related services can be separately identified. It held that the constitutional fiction in Article 366(29A) cannot be expanded beyond its express scope, and that service tax under the Finance Act, 1994 and VAT operate in distinct fields. On that basis, charges for conceptualisation and design services were not includible in the VAT taxable value, and the assessment approach taxing the entire composite value was set aside. Case-Laws Service Tax Wed, 09 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2576