2019 (2) TMI 1177

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....trading activity covered the total amount charged from the customers. The activity was held by the Department to be falling under the category of management, maintenance or repair service (w.e.f. 16.06.2005) and covered by the definition under Section 65 (64) of the Finance Act, 1994. While there was no dispute about the nature of the activity as well as the category under which the activity is liable for service tax payment, dispute arose about the consideration for charge of service tax under the above category. The appellant was paying service tax under the above category, after availing the benefit of the exemption under the Notification No. 12/2003. The said Notification granted exemption for the value of taxable service equal to the v....

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....ation No.12/2003. She submitted that the benefit was incorrectly denied by lower authorities. She also made the following further arguments;- (i) She referred to the submissions made by the appellant in reply to show cause notice and submitted that as per the table furnished in the reply to show casue notice, the average value of material in the total invoice value works out to about 90% of the value. She further pointed out that the appellant was also paying VAT under the Composition Scheme and referred to a few Annual Returns in form "VAT-11" She submitted that the appellant has already discharged the service tax on the estimated 10% towards the labour charges and as such, she claimed that no further service tax is liable to be p....

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.... the sales tax returns showing the sale of goods for the purpose of retreading. As such he justified the impugned order for levy of service tax. 6. We have heard both the sides and perused the record. 7. The activity carried out by the appellant is in the nature of retreading of tyres. Evidently, such activity is in the nature of repair and maintenance of tyres. The activity includes use of certain materials in the process of retreading. The appellant is found to charge a consolidated invoice for recovery of the charges from the customer. They were found to have imposed a stamp on the invoice indicating the split up of the overall invoice value into the material and spares cost as well as labour charge and have discharged the service tax....