Composite Contracts Can't Be Taxed Under “Erection, Commissioning And Installation Services”: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) clarified that composite contracts involving erection, commissioning, and installation services are taxable under the Finance Act, 1994. The tribunal's decision was based on the premise that such contracts, though inclusive of goods, primarily involve services, and hence fall under the service tax ambit. This ruling reinforces the taxability of service elements in mixed contracts.