2014 (11) TMI 713

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....he business of retreading of old and used tyres. There is a demand of service tax along with interest and penalty under the category of "management, maintenance or repair service".  Ld. Advocate on behalf of the applicants drew the attention of the Bench, the relevant portion of the Order-in-Original No.9/2013 (ST-ADC) dt. 28.2.2013, wherein it is observed that the appellants paid the service tax representing labour charges. Thus there is a demand of tax on the material portion alone. It is seen from the said adjudication order that the appellants contended that they are paying sales tax/VAT on the materials at the time of purchase and also at the time of delivery of retreaded tyres since it is a works contract service and the transfer....

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....sold/supplied in contracts for construction of buildings with labour and material. The service portion of the composite contracts can be made subject matter of service tax. Aspect doctrine is applied for bifurcating/vivisect the composite contract. (2) Service tax can be levied on the service component of any contract involving service with sale of goods, etc. Computation of service component is a matter of detail and not a matter relating to validity of imposition of service tax. It is procedural and a matter of calculation. Merely because no rules are framed for computation, it does not follow that no tax is leviable. (3) The notifications in question are in alternative and optional. An assessee may take advantage or benefit of the noti....