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?

[Mukesh Kumar]

Service Tax on re-treading of old tyres have been confired by the tribunal in 2009 TMI - 32678 - CESTAT, CHENNAI. However abatement under ntoification 12/2003 was allowed.

AI Summary

Service tax on tyre retreading and reconditioning services affirmed, with permissible abatement under the relevant notification.
Retreading of old tyres was treated as a taxable service under the MRS service category rather than as manufacture under chapter 40; a tribunal confirmed service tax applicability and allowed abatement under the relevant notification, reducing the taxable value of the retreading service.