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February 2014

2013 (32) STR 530 (All.) Commissioner of Cus. & C. Ex. vs. Balaji Tirupati Enterprises

By Puloma Dalal, Jayesh Gogri, Mandar Telang, Chartered Accountants
Reading Time 1 mins
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If goods are deemed to be sold in the execution of works contract, service tax cannot be levied on the same.

Facts:
The substantial questions put forth before Hon’ble High Court were as under:

Whether composite contract of repairs can be

segregated into goods and services portion on the basis of payment of VAT on goods used during repairs?

Whether Notification No. 12/2003-ST dated 20/06/2003 is applicable when bifurcation of cost of various components is available in the contract?

Whether service tax is to be paid on total cost of repair under present composite contract?

Held:
Agreeing with the decision of Tribunal, Hon’ble High Court summarily dismissed the appeal and held that the goods which were deemed to be sold in the execution of works contract shall not be leviable to service tax.

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