Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 737 - AT - Service TaxValuation - inclusion of value of the materials consumed by the appellant while providing the services in the assessable value - N/N. 12/2003 - Time limitation - HELD THAT:- The Hon’ble Apex Court in the case of SAFETY RETREADING COMPANY (P) LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, SALEM, M/S TYRESOLES INDIA PRIVATE LMITED VERSUS THE COMMISSIONER OF CENTRAL EXCISE, GOA AND M/S LAXMI TYRES VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE [2017 (1) TMI 1110 - SUPREME COURT] has held that value of materials cannot be included for arriving at the total taxable value on which VAT has been discharged. Following the said decision, we are of the view that the demand raised including value of materials cannot sustain. The learned counsel has submitted that if the value of materials is excluded from the total taxable value as raised in the show-cause notice, the appellant would fall within the threshold limit for the disputed period. However, this fact requires to be verified. For the limited purpose of verifying as to whether the appellant falls within the threshold limit, the matter is remanded to the adjudicating authority. Time Limitation - HELD THAT:- The appellant has not taken any Service Tax or Central Excise registration. The Board by its Circular dated 27.02.2012 has only clarified that the tyre retreading activity is subject to levy of service tax. The said Circular does not give any confirmation that the Board was having any doubt as to whether it would be manufacture. The evasion of tax would not have come to light but for interference by department - the contentions raised by the appellant that the extended period is not invocable cannot sustain. The appeal is partly allowed and remanded for the limited purpose of verification and reqantification by excluding the material consumed for providing the services from the total quantity of taxable value and if so to verify whether the appellant would be eligible for threshold limit exemption.
|