2014 (8) TMI 145

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....R) For the Respondent : Mr S B Awate, Consultant PER : S S Kang 1. Heard both sides. 2. Revenue filed the appeal against the order passed by the Commissioner (Appeals). The respondents are undertaking the activity of retreading of tyres. The activities are covered under the Management Maintenance & Repairs Service. The Respondents were paying service tax only on the labour charges towa....

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....re the impugned order is not sustainable. 5. Revenue also submitted that as per the provisions of Notification No. 12/2003-ST the value and materials sold by the service provider to the service recipient is not to be taken into consideration subject to the condition that there is documentary proof specifically indicating the value of such materials. In the present case, the respondents, in the ....

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....purpose of service tax. 7. We find that in the present case issue involved is whether the respondents are entitled for the benefit of Notification No. 12/2003-ST. For ready reference the provisions of the Notification are reproduced below:-     "In the exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied ....

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....arate invoice regarding the actual sale of goods and material. We find that this issue is now settled by the Tribunal in the case of Ador Fontech Ltd. (supra) and the Tribunal held that in the case of retreading of tyres where the invoices are showing deemed sale of certain percentage of material the benefit of Notification No. 12/2003 is not available. The Tribunal further held that the material ....