2014 (1) TMI 669

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....ructure such as walls, partitions, furniture, ceiling, etc.; providing pest control; supplying/fixing false ceiling, supply/fixing flooring materials; supply of wooden and glass doors; supplying furniture, supplying other decorative items like vertical blinds; supplying air conditioning machines and other electrical fittings; and undertaking wiring, networking panels, etc. The consideration charged is on lump sum basis and the purchase orders would not show the break-up of goods supplied and services rendered and separate consideration for sales and service is not indicated in the invoice. According to the appellants, these are composite contracts and appellant is registered and is paying VAT on the portion attributable to goods and has bee....

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.... on limitation itself the appellant has made out a complete case in their favour and therefore instead of postponing the final decision after granting stay, it was felt that it would be appropriate to decide the matter finally. Accordingly, the requirement of pre-deposit is waived and the appeal itself is taken up for final decision. 3. We find that the services undertaken by the appellant in this case is under the category of repair, alteration or restoration or similar services in relation to building or civil structures. With effect from 2005, renovation was also added to the definition and in 2007; the activity was also brought under 'works contract' but only when the work is undertaken in respect of a new building. Therefore, there is....

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.... any case, that would require segregation of contracts into renovation ones and others. As an alternative submission, the learned counsel stated that the benefit of Notification No.12/2003-ST would be available to them. He submits that appellant has registered under State VAT Act and has been paying VAT on the portion on which service tax has not been paid. He also submits that they have records to show that the actual quantum of goods used and supplied during the provision of service would be more than equal to or more than 67% and therefore conditions under Notification No.12/2003 are met by them. He also submits that if an opportunity is given and if the matter is remanded, they would be able to submit necessary records and documents to ....

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....service portion and supply portion and only State Governments have the power to levy sales tax and Central Government have the power to levy service tax on the service portion. 4. Imagic Creative Pvt. Ltd. vs. CCT: 2008 (9) STR 337 (SC) Payment of VAT and service tax mutually exclusive. 5.   Circular No.128/10/2010-ST dated 24.8.2010   Clarified that in case of long term contracts classification would undergo a change w.e.f. 1.6.2007 as works contract describes the nature of the activity more specifically. 6.   Bhayana Builders (P) Ltd. vs. CST: 2013 (32) S.T.R. 49 (Tri.-LB)   Value of free supplies not to be added to the gross amount charged as they would not constitute non-monetary consideration. We find ....