TaxTMI 
TaxTMI 
2018 (6) TMI 1005
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....ider. The appellant had obtained registration for Business Auxiliary Service, Erection commissioning & installation services, Renting of immovable property services and Transfer of goods by road services. The appellants were inter alia engaged in production, supply and installation of structural glazing, sliding doors and window to residential buildings. The contract for installation of aluminium structures was entered into with the builders and at times with individuals. The works involved fabrication of the required components for structural glazing/ windows at their factory and installation of the same at various sites. The contract involved designing, supply, fabrication, erection and commissioning. There was no separate service contrac....
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....nsaction treating the transaction as a works contract. The contract was composite and there was no separate element of service or sale. It was argued that since they had paid VAT on the entire transaction, it can only be treated as works contract and thus, there cannot be any demand for the period prior to 1.6.2007. It was also argued that there activity continued to be works contract and demand in any other head cannot be raised after 1.6.2007. It was argued that the demand cannot be confirmed on the strength of wrong clarification and relied on the decision of the Tribunal in the case of Sandeep Vilas Kotnis - 2017 (51) STR 428 (Tri-Mum). 2.3 He further argued that the contract was composite contract having the element of sale of detai....
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....The contract being an indivisible contract with single indivisible value, the noticee discharged the VAT liability under the Works Contract @ 4% on 80% of the value under composition scheme as against the Standard VAT rate of 12.5%. It is evident from the records that there was no actual sale of goods to the recipient of service; consequently VAT could not have been paid on the actual sale value of the goods or materials at the applicable Standard VAT rate; consequently VAT has not been paid on the actual sale value but on the transfer of property in goods involved in the execution of works contract on a notional value at the reduced VAT rate as against the actual value at Standard VAT rate, by availing the composition scheme. Materials on ....
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.... It is well settled law that the law declared by the highest court of the country has to be interpreted in such a manner as if the same was the law, even prior to declaration of the same by Hon'ble Supreme Court. As such, we find favour with the appellant's stand that whatever duty stands paid by them was also wrongly paid as there was no tax liability on their part in view of the recent decision of the Hon'ble Supreme Court. However, learned Advocate fairly agrees that whatever has been paid stands paid and they are not disputing the payment of the same." 4.3 Relying on the aforesaid decision, it is held that the activity is not taxable for the period prior to 1.6.2007. After 1.6.2007, the activity would be classifiable under works ....