Delhi High Court in Suresh Kumar Bansal vs Union Of India, has held that no service tax under Section 66read with Section 65(105)(zzzh) of the Finance Act could be charged in respect of composite contracts entered into with builders, since neither the Act nor Rules provide for a machinery provision for excluding all components other than service components for ascertaining the measure of service tax. Division Bench comprising of Justices S. Muralidhar and Vibhu Bakhru set aside the explanation to Section 65(105)(zzzh) to the extent that it seeks to include composite contracts for purchase of units in a complex within the scope of taxable service. The Bench however rejected the challenge against levying service tax with respect to preferential location charges levied by a builder LEGISLATIVE COMPETENCE The High Court has dismissed the challenge against the Legislative Competence holding that “We do not find any merit in the contention that the imposition of service tax in relation to ...