9911796707
TMI Blog2014 (11) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of retreading of old and used tyres. There is a demand of service tax along with interest and penalty under the category of "management, maintenance or repair service". Ld. Advocate on behalf of the applicants drew the attention of the Bench, the relevant portion of the Order-in-Original No.9/2013 (ST-ADC) dt. 28.2.2013, wherein it is observed that the appellants paid the service tax representing labour charges. Thus there is a demand of tax on the material portion alone. It is seen from the said adjudication order that the appellants contended that they are paying sales tax/VAT on the materials at the time of purchase and also at the time of delivery of retreaded tyres since it is a works contract service and the transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold/supplied in contracts for construction of buildings with labour and material. The service portion of the composite contracts can be made subject matter of service tax. Aspect doctrine is applied for bifurcating/vivisect the composite contract. (2) Service tax can be levied on the service component of any contract involving service with sale of goods, etc. Computation of service component is a matter of detail and not a matter relating to validity of imposition of service tax. It is procedural and a matter of calculation. Merely because no rules are framed for computation, it does not follow that no tax is leviable. (3) The notifications in question are in alternative and optional. An assessee may take advantage or benefit of the not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meet the tests laid down under Sections 93 and 94 of the Act because they relate to manner and mode of computation of service tax in a composite contract. The object and purpose is not to tax as non-service element or to include non-taxable part of the composite contracts. (9) It has not been shown and established that the formula or the value prescribed in the notifications is absurd or irrational. The said notifications are not per se an arbitrary exercise and contrary to data or formula for computing service element. In taxation matters, classification should not be struck down as discriminatory unless there are strong and compelling reasons that show absurdity and, therefore, violation of Article 14 of the Constitution." 5. In view o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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