2014 (1) TMI 404 - HC - Service Tax

Division of service - Whether any composite contract for providing service of complete repair of old and damaged transformer may be divided into service portion and goods portion on the basis of payment of VAT on certain goods used during repair - Held that - goods which were deemed to be sold in the execution of works contract that shall not enter into the purview of the levy of Service Tax - Decided against Revenue.

Summary

The High Court of Allahabad dismissed an appeal against a Customs, Excise & Service Tax Appellate Tribunal order regarding service tax on a composite contract for repair of old transformer. The court agreed with the Tribunal that goods sold in a works contract are not subject to service tax. The appeal was dismissed summarily.