2025 (10) TMI 395

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....d used tyres, received directly from individual customer or through their dealers. Entertaining an opinion that the activity undertaken by the appellants falls under category of "maintenance or repair services", Revenue issued a Show Cause Notice, demanding Service Tax of 1,65,764 along with interest and penalties, for the period 01.11.2005 to 31.12.2006. Adjudicating Authority, vide order-in-original No. dated 19.03.08, confirmed the proposals of the Show Cause Notice. On an appeal, Commissioner (Appeals), vide interim order dated 17.09.2008 directed the appellant to deposit Rs. 80,000 each towards service tax penalty; appellants, vide their letter dated 04.10.2008, requested for modification of stay order; Commissioner (Appeals), vide Ord....

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....goods and services and thus fall under "Works Contract Services" and value of material used in tyre retreading requires to be abated from the gross value charged. 4. Learned Counsel submits that Hon'ble Supreme Court, in the case of Safety Retreading Co (P) Ltd 2017 (48) STR 97 (SC) held that a tyre re-trader was liable to pay service tax only on service component which under State Act was quantified at 30%; assessee was not liable to pay Service Tax on total amount for retreading including value of materials/goods that have been used and sold in execution of contract. He further relies on: • Super Transports (P) Ltd CCE2017 (51) STR 46 (T) • Padmashree Tyre Retreading Works (2024) 20 Centax 590 (T) â€....

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.... Authorized Representative, reiterates the findings of the impugned order. 8. Heard both sides and perused the records of the case. The brief issue involved in the case is as to whether the appellants are eligible to get deduction on account of the value of materials used in the services rendered by them and as to whether imposition of penalties is justified. We find that the issue is decided on merits in favour of the appellants. We find that Hon'ble Supreme Court, in the case of Safety Retreading Co (P) Ltd (supra) held that a tyre re-trader was liable to pay service tax only on service component which under State Act was quantified at 30%; assessee was not liable to pay Service Tax on total amount for retreading including value of mat....