CESTAT Bangalore: Prima facie case found for service tax on "retreading worn-out tyres"

The Appellate Tribunal CESTAT Bangalore ruled in favor of the appellant, finding a prima facie case against the demand for service tax on "retreading of worn-out tyres" for the period from April 2008 to March 2009. The appellant's argument that this activity amounts to manufacture based on a tariff entry introduced in 2005 was upheld. Citing previous orders in favor of similar assessees, the tribunal granted a waiver of pre-deposit and stay of recovery for the adjudged dues.

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The Appellate Tribunal CESTAT Bangalore found a prima facie case for the appellant against the demand for service tax on "retreading of worn-out tyres" for the period from April 2008 to March 2009. The appellant argued that this activity amounts to manufacture based on a tariff entry introduced in 2005. Previous orders in favor of similar assessees were cited, leading to a waiver of pre-deposit and stay of recovery for the adjudged dues.

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