TMI Blog2018 (5) TMI 1231X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Service Tax Appeal No.ST/ 52478/2014-ST [DB] , ST/52141 /2014-ST [DB], ST/Cross/55104/2014 - ST/A/51642-51643/2018-CU[DB] - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. 2. Aggrieved by the impugned order, the present appeals have been filed, which are disposed of with this common order. 3. With the above background, we have heard both the sides. 4. Shri R.M. Saxena, ld. Advocate appearing for the assessee, argues and his arguments are summarise below:- 1) There is no dispute on the fact that Service Tax was liable to be paid but he argued that the appellant was entitled to the benefit of the abatement under Notification No.12/03-ST. It is his submission that while rendering the service of retreading, tread rubber is also used and the value of the trade rubber cannot be included for payment of Service Tax. In this connection, he relied on the following judgments. 1. PLA Tyre Works ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to the sale of such material. 8. We have carefully perused the decisions cited on behalf of the assessee. In the case of Safety Retreading Co. (supra) the Hon ble Supreme Court has occasion to consider a similar contract for the retreading of tyres. The 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. 9. To a specific query from the Bench the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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