https://www.taxtmi.com/caselaws?id=788491 A composite activity of digging pits and fitting oil tanks with materials was treated as Works Contract Service because the contracts and surrounding facts showed a mixed supply of materials and execution of work. The Tribunal found that the department had proceeded on a presumption without determining the true nature of the transaction, and it noted VAT payment on the value received as consistent with works contract treatment. On that basis, demand under Commercial or Industrial Construction Service was not sustainable; the consequential penalty under Section 78 was set aside, while the Section 77 penalty for non-filing of returns was retained. en-us Mon, 16 Mar 2026 00:00:00 +0530 Tue, 24 Mar 2026 08:12:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788491 A composite activity of digging pits and fitting oil tanks with materials was treated as Works Contract Service because the contracts and surrounding facts showed a mixed supply of materials and execution of work. The Tribunal found that the department had proceeded on a presumption without determining the true nature of the transaction, and it noted VAT payment on the value received as consistent with works contract treatment. On that basis, demand under Commercial or Industrial Construction Service was not sustainable; the consequential penalty under Section 78 was set aside, while the Section 77 penalty for non-filing of returns was retained. Case-Laws Service Tax Mon, 16 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788491