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TMI Blog2018 (5) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... e is covered by the judgment of the Hon’ble Supreme Court in the case of Safety Retrading Co. (P) Ltd. [2017 (1) TMI 1110 - SUPREME COURT], where it was held that an assessee is liable to pay tax only on the service component - the value of the raw material used in retreading of the tyres need not be included in assessable value - appeal allowed - decided in favor of appellant. - Appeal No.ST/490 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Safety Retrading Co. (P) Ltd. vs CCE Salem 2017 (48) STR 97 (SC). He submits that the appellant are discharging VAT/Sales Tax on the material used for retrading of tyres, hence its value is not includible in the taxable value of retrading srevice. 5. Ld. AR for the Revenue reiterated the findings of the Ld. Commissioner (Appeals). 6. We find that the issue is covered by the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004, extracted above, subject, however, to the condition that adequate and satisfactory proof in this regard is forthcoming from the assessee. On the very face of the language used in Section 67 of the Finance Act, 1994 we cannot subscribe to the view held by the Majority in the Appellate Tribunal that in a contract of the kind under consideration there is no sale or deemed sale of the parts or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the State Act. The aforesaid argument overlooks certain basic features of the case, namely, the undisputed assessment of the assessee under the local Act; the case projected by the Department itself in the show cause notice; and thirdly the affidavit filed before this Court by one S. Subramanian, Commissioner of Central Excise, Salem. 12. No dispute has been raised with regard to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indeed, is strange. No dispute has been raised with regard to the correctness of the said figures furnished by the assessee in the show cause notice issued to justify the stand now taken before this Court; at no point of time such a plea had been advanced. 7. Following the aforesaid principle, the impugned order is set aside and the appeals is allowed. (Dictated and pronounced in the open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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