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2014 (6) TMI 460 - AT - Service TaxDemand of service tax - Management, Maintenance and Repair Service - Held that:- The appellant’s were providing the service of retreading of tyres, which is a taxable service. The main contention of the appellant is that they paid service tax on labour portion. They are contesting demand on the material portion - in the case of maintenance and repair of transformers entered into agreement with clients in two separate parts, namely, scope of repair work and supply of parts, the value of the goods used in carrying out repair activities is not includible in the taxable value. Service tax can be levied on the service component of any contract involving service with sale of goods etc. Computation of service component is a matter of detail and not a matter relating to validity of imposition of service tax. It is procedural and a matter of calculation. Merely because no rules are framed for computation, it does not follow that no tax is leviable - tax is not leviable on material portion of the contract. But, it is required to examine the record - Matter remanded back - Decided in favour of assessee
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