2023 (11) TMI 1381

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....category of 'Business Auxiliary service' (BAS) and attract 'nil' rate of tax in terms of Notification No. 14/2004 and not under the head 'Management, Maintenance or Repair service' (MMRS). The period in dispute is April 2010 to March 2011. 2. The brief facts are that the Appellant is engaged in the business of rerubberisation of old, worn out rubberized rollers used by the printing industry. The Appellant removes the worn out rubber compound coating and replaces it with fresh rubber coating. The re-rubberisation of old rollers did not amount to manufacture under the Central Excise Act during the relevant time. The state VAT department treated the re-rubberisation as execution of 'works contract' and the property transferred to the customer....

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....d and sold in the execution of the contract or otherwise. 6. The Hon'ble Supreme Court examined the definition of taxable service in relation to MMRS under Sec 65(105)(zzg), the charging section 66 & section 67 with respect to valuation, wherein, the section specifically mentions that the value of service does not include the cost of parts or other material, if any, sold to the customer during the course of providing MMRS. The Apex Court also referred to Notification No. 12/2003-ST, which specifically exempts from the value of taxable service, the value of goods and materials sold by the service provider to the service recipient, from the levy of service tax subject to the condition that there is documentary proof specifically indicating t....