Notification exemption for consumables in tyre retreading upheld where materials were consumed in providing maintenance and repair services.

Materials such as patches and similar consumables used in tyre retreading were treated as goods consumed in the course of providing Maintenance and Repair Services, so the benefit of Notification No. 12/2003-S.T. was admissible. The denial of the notification exemption was unsustainable in light of the cited precedent, and the payment of sales tax on the consumed materials removed the need for further verification on that aspect. The operative effect is that the service provider was entitled to the notification benefit for materials consumed in the retreading process.

---

---

Issues: Whether the benefit of Notification No. 12/2003-S.T. dated 20-06-2003 was admissible in respect of materials consumed during the course of retreading of tyres under Maintenance and Repair Services.

Analysis: The materials such as patches and similar consumables used in retreading of tyres were treated as materials consumed in the course of providing the taxable service. The denial of the notification benefit was unsustainable in light of the cited precedent, and the fact that sales tax had been paid on the materials consumed removed the need for further verification on that aspect.

Conclusion: The notification benefit was admissible and the denial was not justified.

---