https://www.taxtmi.com/caselaws?id=764832 The Karnataka HC ruled in favor of the petitioner in a service tax dispute concerning tyre retreading business. The court held that service tax should be levied only on the service component, not the entire turnover value. The petitioner had properly bifurcated material costs (subject to VAT) and labor charges (subject to service tax) in their invoices, which the revenue authorities did not dispute. Following SC precedent in Safety Retreading Company case, the court rejected the revenue's contention of alternative remedy and upheld constitutional separation of tax powers. The writ petitions were partly allowed. en-us Fri, 10 Jan 2025 00:00:00 +0530 Sun, 19 Jan 2025 18:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764832 The Karnataka HC ruled in favor of the petitioner in a service tax dispute concerning tyre retreading business. The court held that service tax should be levied only on the service component, not the entire turnover value. The petitioner had properly bifurcated material costs (subject to VAT) and labor charges (subject to service tax) in their invoices, which the revenue authorities did not dispute. Following SC precedent in Safety Retreading Company case, the court rejected the revenue's contention of alternative remedy and upheld constitutional separation of tax powers. The writ petitions were partly allowed. Case-Laws Service Tax Fri, 10 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764832