2008 (12) TMI 91

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.... S. Ignatius, Advocate, for the Appellant. ShriN.J. Kumaresh, SDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. - The appellants herein are engaged in the business of providing tyre re-treading service and had obtained service tax registration for providing maintenance, repair and reconditioning services. They are franchisees of M/s. MRF Tyres Ltd., Chennai to undert....

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....n (vi) to Section 67 of the Finance Act, 1994. The exclusion was, therefore, presumably only in respect of parts or other materials sold to customers but no sale of parts or other materials was noticed (the tread rubbers were consumed by the buyers for reconditioning of tyres). Further, the appellants had split the amount collected as amount collected in the ratio of 70% : 30% as per the direction....

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....ntire period show that all the goods and materials were purchased from MRF and paid for by the appellants. Two specimen invoices bearing nos. 1831 dated 7-11-2005 and 1971 dated 30-11-2005 raised by the appellants of their customers during the month of November, 2005 and two specimen invoice nos. 2504 dated 1-3-2006 and 2528 dated 4-3-2006 for the month of March, 2006 clearly show material cost an....

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....er (Appeals) that bifurcation of receipts into an element of goods and the element of services does not arise, no longer reflects the correct legal position, in the light of the Apex Court decision in BSNL v. Union of India reported in 2006 (2) S.T.R. 161 (S.C.) wherein the apex Court has held that once it is possible to bifurcate any transaction into sales portion and service portion, the respect....