2018 (7) TMI 429

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....contract with the governmental concerns and other reputed private concerns to provide re-trading and used tyres services. The re-trading charges fixed in terms of the contract were cumulative values i.e. towards the total of material costs and the service costs. The department has demanded service tax on the total cumulative value. But the Commissioner (Appeals) has allowed the claim of the appellant that the material which were procured for re-trading services was subject to the VAT so the value which comes 70% of the total re-trading charges, cannot be included in the total value of the service tax. Aggrieved by the same the present appeal is filed. 3. With this background we heard both sides and perused the appeal record. 4. After ....

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.... dated 7th April, 2004, extracted above, subject, however, to the condition that adequate and satisfactory proof in this regard is forthcoming from the assessee. On the very face of the language used in Section 67 of the Finance Act, 1994 we cannot subscribe to the view held by the Majority in the Appellate Tribunal that in a contract of the kind under consideration there is no sale or deemed sale of the parts or other materials used in the execution of the contract of repairs and maintenance. The finding of the Appellate Tribunal that it is the entire of the gross value of the service rendered that is liable to service tax, in our considered view, does not lay down the correct proposition of law which, according to us, is that an assessee ....