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2018 (5) TMI 1231 - AT - Service TaxValuation - management and maintenance or repair work - benefit of abatement under N/N. 12/2003-ST dated 20.06.2003 - benefit of the abatement stands denied for the non-compliance of the second condition of the Notification that there should be documentary proof specifically indicating the value of the said goods and materials sold during the course of service by the service provider to the recipient of the service. Held that: - reliance placed in the case of Safety Retreading Company (P) Ltd. vs. Commissioner of C. Ex., Salem [2017 (1) TMI 1110 - SUPREME COURT], where Apex Court has considered the practice in the industry of retreading of tyres wherein out of the total consideration charged for the retreading activity, the value added tax is normally charged on the component of 70% of the consideration by the State Authorities. The Apex Court has held that similar dispensation can be given for the purpose of levy of Service Tax also and that such Service Tax be charged on 30% of the retreading charges. The claim of abatement in terms of the Notification 12/2003 is required to be re-considered in the light of the pronouncement of law on the subject by the Hon’ble Supreme Court in the case of Safety Retreading - appeal allowed by way of remand.
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