Assessee liable to pay service tax only on service component of works contract: HC

EX/ST/VAT: In a case of works contract, component of gross turnover in respect of which assessee has paid taxes under local Act with which it is registered as works contractor is excluded from service tax. Thus, in a contract of retreading of tyres, it can not be said that there is no sale or deemed sale of parts or other materials used in the execution of the contract. As a result, in such a case, it is not the entire gross value of service rendered that is liable to service tax, but,

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