https://www.taxtmi.com/caselaws?id=338030 The SC held that in tyre retreading contracts, service tax is leviable only on the service component, not the total contract value including materials. The Court interpreted Section 67 of the Finance Act, 1994, which excludes the cost of parts or materials sold during maintenance or repair services from taxable service valuation. The appellate Tribunal's finding that the entire gross value was liable to service tax was deemed incorrect. The Court accepted that 70% of the contract amount represented material costs, making only 30% taxable as service component. The Revenue was barred from challenging the authenticity of figures provided by the assessee for the first time before the SC, as no such dispute was raised earlier. The appeal was allowed in favor of the assessee. en-us Wed, 18 Jan 2017 00:00:00 +0530 Thu, 17 Jul 2025 14:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338030 The SC held that in tyre retreading contracts, service tax is leviable only on the service component, not the total contract value including materials. The Court interpreted Section 67 of the Finance Act, 1994, which excludes the cost of parts or materials sold during maintenance or repair services from taxable service valuation. The appellate Tribunal's finding that the entire gross value was liable to service tax was deemed incorrect. The Court accepted that 70% of the contract amount represented material costs, making only 30% taxable as service component. The Revenue was barred from challenging the authenticity of figures provided by the assessee for the first time before the SC, as no such dispute was raised earlier. The appeal was allowed in favor of the assessee. Case-Laws Service Tax Wed, 18 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338030