2009 (7) TMI 667 - AT - Service Tax

Management maintenance or repair services Held that- It appeals to commonsense that that trye retreading is neither repair nor maintenance but a reconditioning activity to give economic life to the tyre retreaded . This activity has been activity to give economic life to the tyre retreaded. This activity has been intended to be taxed with effect from 16.6.2005. We made it clear that a lateral entry does not burden a former activity without letters of law intending to do so. Thus dismiss the appeal of the Revenue.

Summary

The Appellate Tribunal CESTAT, New Delhi, in the citation 2009 (7) TMI 667, heard an appeal by the Revenue against an order by the Commissioner (Appeals) which held that tyre re-treading under a maintenance or repair contract is taxable after 16-6-05. The Revenue argued that the amendment to tax reconditioning activities after 16-6-05 should also apply to activities performed before that date. However, the Tribunal, with the assistance of an amicus curiae, determined that activities not taxable before 16-6-05 cannot be retrospectively taxed. The Tribunal concluded that tyre re-treading is a reconditioning activity intended to be taxed from 16-6-05 onwards. The Tribunal directed the Adjudicating Authority to calculate any service tax liability for tyre re-treading from 16-6-05 to 31-10-05 and dismissed the Revenue's appeal. The decision was dictated and pronounced in open court.