SECTION 65(64) OF THE FINANCE ACT, 1994 - MANAGEMENT, maintenance OR REPAIR SERVICE - Application of Service Tax on Tyre Retreading Activity .

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....oms. In the said letter you have represented that Service Tax may not be charged on the activity of retreading of tyres under 'Management Maintenance & Repair Service', The argument given by you is that 'retreading of tyre' is specifically figuring in Central Excise Tariff under TI 4012 and therefore, they are excisable goods. Hence, in your view Service Tax cannot be imposed, as Excise Duty is pa....

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.... section 3 of the CEA, the additional requirement of these goods to have been produced or manufactured in India would also have to be satisfied. In this context, judgment of the Hon'ble Supreme Court in the case of M/s Ahmedabad Electricity Co. Ltd is relevant. Some of the observations as made in this judgment are reproduced below: ".....in the present case however, we are considering the express....

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....s not make the activity of Retreading of Tyres excisable, since the test of production or manufacture has to be also satisfied. In this context, the judgment of Hon'ble Supreme Court in the case of M/s P.C. Cheriyan v. Mst. Barfi Devi is relevant. In the said judgment, Hon'ble Supreme Court has observed that- "The retreading of old tyres does not bring into being a commercially distinct or differ....