https://www.taxtmi.com/caselaws?id=750886 Works contract classification depended on the true nature of the contracts and the segregation of goods and service components. The article states that where materials and execution of work were both supplied, and VAT/Sales Tax was paid, service tax could be levied only on the service portion under the works contract regime, including the composition scheme or valuation under Rule 2A of the Service Tax (Determination of Value) Rules, 2006. A demand raised on the gross contract value, without first examining bifurcation and the applicable works contract treatment, was unsustainable. The matter was remanded for fresh adjudication on classification, VAT/Sales Tax payment, and taxable value. en-us Mon, 01 Apr 2024 00:00:00 +0530 Wed, 03 Apr 2024 06:25:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750886 Works contract classification depended on the true nature of the contracts and the segregation of goods and service components. The article states that where materials and execution of work were both supplied, and VAT/Sales Tax was paid, service tax could be levied only on the service portion under the works contract regime, including the composition scheme or valuation under Rule 2A of the Service Tax (Determination of Value) Rules, 2006. A demand raised on the gross contract value, without first examining bifurcation and the applicable works contract treatment, was unsustainable. The matter was remanded for fresh adjudication on classification, VAT/Sales Tax payment, and taxable value. Case-Laws Service Tax Mon, 01 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750886