2024 (3) TMI 920

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....ion connecting such trenches at road crossings' under the category of "commercial or industrial construction service" during the period from 2004-05 to 2007-08 or not. 3. We find that it is not disputed by the Revenue that these services have been provided by the appellant along with materials. Therefore, the merit classification of the above services is "works contract service", as held by the Hon'ble Apex Court in the case of Commissioner of C.Ex. & Cus., Kerala v. Larsen & Toubro Ltd. [2015 (39) S.T.R. 913 (S.C.)] wherein the Hon'ble Apex Court observed as under: - "17. We find that the assessees are correct in their submission that a works contract is a separate species of contract distinct from contracts for services simpli....

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.... sale on the basis of the overwhelming component test, because there is a stipulation in the contract that the customer is obliged to undertake the work of civil construction and the bulk of the material used in construction belongs to the manufacturer, is not correct, as the subsequent discussion would show; and second, the Notification dated 17-5-2010 issued by the Government of Haryana, Excise and Taxation Department, whereby certain rules of the Haryana Value Added Tax Rules, 2003 have been amended and a table has been annexed providing for "Percentages for Works Contract and Job Works" under the heading "Labour, service and other like charges as percentage of total value of the contract" specifying 15% for fabrication and installation ....

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....services, some additional obligations are imposed, such contract does not cease to be works contract. The additional obligations in the contract would not alter the nature of contract so long as the contract provides for a contract for works and satisfies the primary description of works contract. Once the characteristics or elements of works contract are satisfied in a contract then irrespective of additional obligations, such contract would be covered by the term "works contract". Nothing in Article 366(29-A)(b) limits the term "works contract" to contract for labour and service only. The learned Advocate General for Maharashtra was right in his submission that the term "works contract" cannot be confined to a contract to provide labour a....