https://www.taxtmi.com/caselaws?id=788228 For tyre retreading treated as a works contract, valuation of the service portion depended on whether actual material and labour components were ascertainable. Where the evidence showed that labour charges were not separately ascertainable and VAT had been discharged on a deemed 70% basis, Rule 2A(ii)(B)(i) of the Service Tax (Determination of Value) Rules, 2006 applied rather than Rule 2A(i). On that basis, service tax could not be levied again on the same value already subjected to VAT, and the service element was confined to the balance 30% of the contract value. The demand and penalties were not sustainable. en-us Wed, 18 Mar 2026 00:00:00 +0530 Thu, 19 Mar 2026 13:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788228 For tyre retreading treated as a works contract, valuation of the service portion depended on whether actual material and labour components were ascertainable. Where the evidence showed that labour charges were not separately ascertainable and VAT had been discharged on a deemed 70% basis, Rule 2A(ii)(B)(i) of the Service Tax (Determination of Value) Rules, 2006 applied rather than Rule 2A(i). On that basis, service tax could not be levied again on the same value already subjected to VAT, and the service element was confined to the balance 30% of the contract value. The demand and penalties were not sustainable. Case-Laws Service Tax Wed, 18 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788228