https://www.taxtmi.com/caselaws?id=469960 In tyre re-treading, the taxable value for service tax cannot include the cost of materials on which VAT has already been paid. Section 67 of the Finance Act, 1994 excludes the value of parts or other materials sold, and Notification No. 12/2003-ST applies where the material component is separately identifiable and supported by proof. The governing Supreme Court ruling on retreading transactions was applied to treat tax as payable only on the service element, not on the material portion subjected to local tax. On that basis, the material cost was held outside the taxable value and the demand was unsustainable. en-us Tue, 18 Feb 2025 00:00:00 +0530 Fri, 10 Jul 2026 22:36:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469960 In tyre re-treading, the taxable value for service tax cannot include the cost of materials on which VAT has already been paid. Section 67 of the Finance Act, 1994 excludes the value of parts or other materials sold, and Notification No. 12/2003-ST applies where the material component is separately identifiable and supported by proof. The governing Supreme Court ruling on retreading transactions was applied to treat tax as payable only on the service element, not on the material portion subjected to local tax. On that basis, the material cost was held outside the taxable value and the demand was unsustainable. Case-Laws Service Tax Tue, 18 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469960