Applicability of Central excise or service tax

[govindaraju velugula]

The service tax dept., demanding tax on retreading of old tyres under MRS category. Is it covered under manufacture as per chater 40 in central excise or otherwise service tax will be levieable under service tax act? Kindly clarify this?

AI Summary

Retreading Old Tyres Subject to Service Tax, Not Central Excise; Abatement Allowed under Notification 12/2003 A query was raised regarding whether the retreading of old tyres falls under central excise as manufacturing or is subject to service tax. The service tax department is demanding tax under the MRS category. A response clarified that the tribunal confirmed the applicability of service tax on retreading of old tyres, as per a 2009 decision by CESTAT, Chennai. However, abatement was allowed under notification 12/2003.