Finance Act, 1994: s. 65(105) (zzzze)(as amended) — Works contract – Composite Works Contract — Levy of service tax – Issue as regards the levy of service tax on Composite Works Contracts prior to the introduction of the Finance Act, 2007 by which the Finance Act, 1994 came to amended to introduce s. 65(105) (zzzze) pertaining to Works Contract – Held: For the period prior to introduction of Finance Act, 2007, service tax was not leviable under Finance Act, 1994 on indivisible works contracts – Binding decision of the Court in the case of Larsen and Toubro Limited, is followed – Larsen and Toubro Limited’s case has stood the test of time and has never been doubted earlier – Said decision has been followed consistently by this Court as well as by various High Courts and the tribunals – If the prayer to reconsider and/or review the judgment in Larsen and Toubro Limited is accepted, it may unsettle the law, which has been consistently followed since 2015 onwards – Thus, on the principle of stare decisis, Larsen and Toubro Limited’s case, neither needs to be revisited, nor referred to a larger Bench of this Court and that too after a period of almost seven years – Thus, the orders passed by the respective High Courts/tribunals that for the period pre-Finance Act, 2007, the assesses were liable to pay the service tax on indivisible/composite works contracts is quashed and set aside - Finance Act, 2007.

Doctrines of precedents and Stare decisis – Relevance and significance of – Discussed.