TMI Blog2008 (12) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... sale account of tread rubbers used for treading – invoices shows material cost and service charges separately - since there was a sale of goods while rendering taxable services, benefit of Not. No. 12/03 providing exemption to cost of materials sold is available to the appellant - S/69/2007 - 1427/2008 - Dated:- 16-12-2008 - Ms. Jyoti Balasundaram, Vice-President and Shri P. Karthikeyan, Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from their customers as taxable value in their ST-3 returns and paid service tax thereon. The balance 70% collected was treated as sale account of tread rubbers used for treading. It appeared to the department that the taxable value is the gross amount charged for the services rendered excluding the cost of parts or other materials sold to the customer during the course of providing repair servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Appeals) upheld the demand and penalty; hence this appeal before the Tribunal. 2. We have heard both sides. 3. We find that the appellants ascertained the value of materials used for providing the service of re-treading from the MRF invoices under which materials were purchased, on an actual basis and the costs so arrived at works out to exactly 70% of the total bill amount. Purchase in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f materials. Further, the 70:30 ratio was adopted by the appellants even before the introduction of service tax on the services of re-conditioning of tyres. All this would go to show that there was a sale of goods while rendering taxable services and, therefore, the benefit of Notification No. 12/03 dated 20-1-2003 providing exemption to cost of materials sold is available to the assessees. The fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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