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2018 (7) TMI 429 - AT - Service TaxValuation - re-trading charges fixed in terms of the contract were cumulative values i.e. towards the total of material costs and the service costs - Held that:- The respondent was maintaining sales tax assessment order, purchase orders, stock registers, sellers’ invoices etc. for retrading and the said material costs normally worked out to 70% of the total retreading charges on which the respondent has paid VAT/CST under the said law - It is undisputed fact that the materials consumed were treated as sale/deemed sale in terms of the local sales tax/Central Sales Tax Act, 1956 which is reflected in the sales tax returns. For the remaining 30% the appellant already paid the service tax. Similar views were expressed by the Hon’ble Supreme Court in the case of Safety Retreading Co.(P) Ltd. vs. Commissioner of C.Ex., Salem [2017 (1) TMI 1110 - SUPREME COURT], where it was held that Section 67 of the aforesaid Act deals with valuation of taxable services and specifically mentions that the same does not include the cost of parts or other material, if any, sold to the customer during the course of providing maintenance or repair service. Appeal dismissed - decided against Revenue.
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