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TMI Blog2019 (12) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... in the services of retreading of worn-out tyres of automobiles. As it appeared that the activities fall under the scope of extended definition of taxable service in the category of 'Maintenance or Repair Service' w.e.f. 16/06/2005 and the appellant has failed to pay the service tax and to file a statutory return, a show-cause notice was issued to them demanding an amount of Rs. 4,32,840/- (Rupees Four Lakhs Thirty Two Thousand Eight Hundred and Forty only) towards service tax and education cess and proposing penalties under Sections 76 and 77 of the Finance Act. The original authority after due process of law confirmed the demand and imposed penalties. Aggrieved by the said order, appellant filed appeal before the Commissioner (Appeals) on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 (64). He further submitted that the SLP filed by the Revenue against the decision of the High Court has also been dismissed by the Hon'ble Apex Court. 5. On the other hand the learned AR defended the impugned order and submitted that the issue of taxability of a specific activity "retreading of tyre" has been considered by various judicial forum including the CESTAT and the Hon'ble Apex Court and it has been consistently held that it attracts service tax under the category of "Management, Maintenance and Repair Service". The learned AR further submitted that this issue is no more res integra and has also been settled by the Honb'le Apex Court in the case of Safety Retreading Company (P) Ltd. Vs. CCE, Salem decided on 18.01.2017 wherein t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght under the ambit of the issue discussed in the order of the Hon'ble High Court. 6. After considering the submissions of both the parties and perusal of the material on record, we find that various Benches of the Tribunal has consistently held that retreading of tyre falls under the category of "Maintenance, Management and Repair Service" and is liable to service tax. Further we find that the Apex Court has also in the case of Safety Retreading Company Ltd. cited supra has specifically held that retreading of tyre is a service which falls under the category of 'Management, Maintenance and Repair Service'. Further we find that the decision of the Hon'ble High Court is not squarely applicable in the present case because the activity of ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not amount to manufacture. Therefore, by following the ratio of the above said decisions, we are of the considered view that the impugned order holding that the process of retreading of tyre amounts to manufacture is not sustainable in law and therefore we set aside the impugned order. As far as imposition of penalty under various provisions are concerned, since the issue relates to interpretation and there were divergent views during the relevant period, we are not inclined to confirm the imposition of penalties, by extending the benefit of Section 80. Accordingly, we confirm the demands and set aside the penalties. Appeal is partly allowed." 7. In view of our discussion above, we do not find any infirmity in the impugned order which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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