9911796707
TMI Blog2015 (12) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... he service tax liability - Held that:- Apparently, it seems that in terms of the various decisions of the higher courts such an activity of retreading of old and used tyres would not amount to manufacture. If that be so, the activity would get covered under the service category of repair and maintenance - appellant’s turnover is around ₹ 1 crore and it cannot be said that it is financially d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was paying service tax on the said activity. However subsequently they stopped paying service tax by treating the said activity as manufacture of retreaded tyres and inasmuch as they were falling within the SSI exemption limit, they also did not pay any excise duty on the same. 3. Subsequently show-cause notice was issued resulting in confirmation of demand of service tax along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 2(f) of the Central Excise Act. The entries in the Tariff are only meant for providing the rate of duty whereas the assessee is required to first cross the test of manufacture. He also draws our attention to various decisions of the judicial as also quasi-judicial authorities laying down that such an activity of repairing the old items would not amount to manufacture inasmuch as the items remain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fairly agrees that a part of the demand would fall within the limitation period. He, however, has not been able to give us the exact figures of the tax falling within the limitation period. Learned AR calculates the same to be around ₹ 4 lakhs. 7. The appellant has also pleaded financial difficulty. Learned AR has drawn our attention to the fact that as per the latest balance sheet, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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