2010 (7) TMI 96

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ow-cause notice was issued to the appellants alleging that the appellants have undervalued the taxable service and have made short payment of Service Tax amounting to Rs.3,70,492/- for the period 16.06.2005 to 31.03.2007. It was alleged that the appellants were providing the service of 'Retreading of Tyres' covered under the category of 'Management, Maintenance or Repair Service' and paying Service Tax only on the 30% of the Labour charges element charged to the customer instead of gross bill amount by excluding the cost of materials used in the service from taxable value by wrongly availing the exemption under Notification No. 12/2003-ST dated 20.6.2003. The said Notification is available only in cases where the sale of goods is evidenced ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....erials and filed returns to the department. The Commissioner (Appeals) has rightly held in his order that the appellants are entitled for cum duty price following the judgment of Hon'ble Supreme Court in the case of Maruti Udyog Ltd., 2002 (141) ELT 3 (SC). But, while re-quantifying the Service Tax demand, the Assistant Commissioner made an error by raising a demand of Rs.23,075/-. In fact nothing is payable by the appellants. Moreover, in the impugned order there is no finding given by the Commissioner (Appeals) while confirming the penalties against the appellant mere saying that 'as regards to imposition of penalties , I find that the appellants were registered under Service Tax on 25.10.2005, but they paid the service tax alongwith inte....