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TMI Blog2015 (11) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... e and consideration is sufficient to render even the most simple and rudimentary transaction to be a contract. The activity of retreading is an activity of repair for maintenance of used tyres and, considering the ingredients of the transaction, would fall well within the ambit of section 65(64)(i). Accordingly, we uphold the contention of Revenue that the activity of the appellant is taxable under Finance Act, 1994. Goods on which VAT has been discharged are not liable to be subject to tax again under Finance Act, 1994 by inclusion in value of taxable services. The tax amount due on the service component thereon will require to be computed. Accordingly, we set aside the demand of tax in the impugned orders and direct the original au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve upheld the demands amounting to ₹ 19,06,545 besides interest thereon and penalties under section 77 and 78 of Finance Act, 1994. All four appeals, are taken up for disposal together. 3. The appellant is in the business of retreading of tyres of motor vehicles by affixing replacement compounds on the worn-out portions of tyres and thus rendering them fit for continued use for a spell. According to them, the activity does not come within the ambit of service tax even though Revenue seeks to categorise them as providers of maintenance and repair service taxable under section 65(105)(zzg) of Finance Act, 1994 with the activity defined under section 65(64) of Finance Act, 1994. 4. Learned Counsel for appellant has argued that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tract is not required to be in writing. At the same time, the existence of offer, acceptance, performance and consideration is sufficient to render even the most simple and rudimentary transaction to be a contract. The activity of retreading is an activity of repair for maintenance of used tyres and, considering the ingredients of the transaction, would fall well within the ambit of section 65(64)(i). Accordingly, we uphold the contention of Revenue that the activity of the appellant is taxable under Finance Act, 1994. 7. Learned Counsel for appellant contends that the activity of retreading includes use of raw materials which are sold to the recipient of the service and that VAT obligations have been discharged on these goods to the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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