query on composition scheme under works contract

HI FRIENDS ...

PLZ LET ME KNOW THE IMPACT UNDER SERVICE TAX OF CONTRACT...

AS PER NOTIFICATION NO. 32/2007-ST DATED 22/5/07, THE BOARD OF EXCISE AND CUSTOMS HAVE GIVEN A NEW OPTION FOR WORK CONTRACTOR REGARDING SERVICE TAX..

THE OPTION IS ST @ 12.36 ON LABOUR WORK OR 2% ON FULL CONTRACT PRICE..IT IS ALSO SAID THAT PURE LABOUR CONTRACT IS NOT ELIGIBLE FOR COMPOSITION SCHEME.

MY QUERY IS ..

IF CONTRACT IS PARTLY MATERIAL AND LABOUR..MEANS IF SOME MATERIAL IS SUPPLIED BY PARTY OTHER THAN CONTRACTOR  AT FREE OF COST AND CONTRACTOR IS ALSO USING MATERIALS IN CONTRACT BY PURCHASING.

WHETHER COMPOSITION SCHEME IS AVAILABLE ON THE ABOVE SITUATION.