2013 (5) TMI 534

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....DR, for the Respondent. ORDER Heard both sides. 2. Applicants are engaged in retreading of old tyres of the customers. The Revenue demanded service tax on the activity undertaken by the applicant under the category of "Maintenance and Repair service". The applicants claimed the benefit of Notification No. 12/2003-S.T., dated 20-6-2003 which provides exemption from payment of service tax e....

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....t in the invoices the sale of materials was shown separately. Therefore, the demand by denying the benefit of notification is not sustainable. 4. Revenue relied upon the decision of the Tribunal in the case of M/s. Safety Retreading Co. P. Ltd. v. Commissioner of Central Excise, Salem in Appeal No. S/148/2008 [2012 (26) S.T.R. 225 (Tri. - Chennai)] whereby in a similar situation, the Tribunal d....

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....activity of retreading of old and used tyres which is liable to service tax under the category of 'Maintenance and Repair Service'. There is no dispute on this issue but the only issue is whether the value of material used for retreading is to be added to the assessable value of the service for the purpose of service tax. 7. This issue is covered in favour of Revenue in Appeal No. S/148/2008, d....