Service classification for tyre re-trading follows binding circulars and precedent, excluding Business Auxiliary Service treatment.

Re-trading of old and used tyres was treated as falling under Management, Maintenance and Repair Service because a Board circular had already clarified that position, and the circular predated the impugned order. Binding Supreme Court and Tribunal precedents also supported that classification, leaving no basis to assess the activity under Business Auxiliary Service. On that footing, the contrary demand could not be sustained, and the impugned order was set aside with consequential relief.

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Issues: Whether re-trading of old and used tyres is classifiable under Business Auxiliary Service or under Management, Maintenance and Repair Service.

Analysis: The classification dispute was resolved by the Board circular clarifying that re-trading of tyres falls within Management, Maintenance and Repair Service. The record also showed that the circular preceded the impugned order and ought to have been considered. The issue had already been settled by the Supreme Court and by the Tribunal in earlier decisions relied upon in the order, leaving no basis to sustain classification under Business Auxiliary Service.

Conclusion: The service was held to fall under Management, Maintenance and Repair Service and not under Business Auxiliary Service, and the demand based on the contrary classification failed.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Where the departmental circular and binding precedent classify re-trading of tyres under Management, Maintenance and Repair Service, the same activity cannot be assessed under Business Auxiliary Service.

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