Commnr.,Central Excise & Customs, ... vs M/S. Larsen & Toubro Ltd

The Supreme Court addressed the applicability of service tax on indivisible works contracts under the Finance Act, 1994, specifically examining the definition of 'service' and the nature of contracts. The Court held that service tax cannot be levied on indivisible works contracts as they do not constitute a service under the Act, thereby overturning the previous stance taken in earlier judgments. The appeals were decided in favor of the respondents, affirming that such contracts are not subject to service tax.