2024 (9) TMI 554

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....e. 2. The facts leading to the present case are that the appellant is engaged in providing services of retreading of tyres of motor vehicles to their clients during the period from April, 2007 to March, 2012. On the basis of the information circulated by DGFT that in the case of M/s.Speed Ways Tyre Service Vs. CCE - 2009 (14) STR 330 (Tribunal-Delhi), the Tribunal has held that tyres retreading activities attract service tax under the category of "Management, Maintenance and Repair Service" as defined under Section 65(105)(zzg) of the Finance Act and, therefore, the appellant was liable to pay service tax. Show cause notice dated 16.10.2012 was, accordingly issued to the appellant raising demand of service tax to Rs.6,26,398/- with interes....

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....e submission of the learned counsel for the appellant is basically on the point that the learned Commissioner agreed with the findings of the order-in-original, whereby the demand was dropped and, therefore, the appeal filed by the Revenue should have been dismissed whereas the same has been allowed. In support thereof, the learned counsel referred to paras 5.2 and 5.3 of the impugned order. Learned counsel further submitted that in para-6 also, there is some confusion as the Commissioner (Appeals) had set aside the impugned order and allowed the appeal filed by the Department, which appears to be a typographical error and, therefore, had made an application for rectification of mistake vide their letter dated 20.04.2018. However, no order ....

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.... the appellant is liable for service tax on service portion only which is below threshold limit of SSI exemption, 53. As the facts of the case are identical to the case decided by the Apex Court, therefore, Service Tax is chargeable after deducting the value of material." 6. In sofar as the concluding lines in para 5.2 above, the learned Commissioner seriously erred in observing that the appellant is liable to service tax on the service portion, which is below the threshold limit of SSI exemption. Once the finding is that the value of the service portion is below the threshold limit, they are entitled to exemption from service tax. The appellant is entitled to avail the benefit of the prescribed limit in terms of Notification no.06/2005-....