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TMI Blog2019 (1) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... h of this Tribunal in the case of Udaipur Tyre Retreading Co. P. Ltd. [2015 (9) TMI 1575 - CESTAT NEW DELHI] has held that the activity of retreading of tyre does not tantamount to maintenance and repair including the recondition or restoration or servicing of motor vehicles. Penalty - Held that:- Since the issue relates to interpretation and there were divergent views during the relevant period, penalties set aside by invoking section 80. Appeal allowed in part. X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner(Appeals) accepted the contention of the assessee and allowed the appeal by holding that the activity of retreading of tyre amounts to manufacture and therefore should not attract service tax. Aggrieved by the said order, Revenue has filed the present appeal. 3. Today the case was listed for final hearing but none has appeared on behalf of the respondent. Since the issue is in a narrow compass, we proceed to decide the appeal on the basis of material on record. 4. Learned AR for the Revenue submitted that the worn-out tyres are collected and procured from the customers and after improving its performance by the activity of retreading, it is given back to the same customers who have supplied it. He further submitted that by this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. CCE, Jaipur-II [2017(52) STR 501 (Tri. Del.)] ii. P.C. Cheriyan Vs. MST. Barfi Devi [1979(4) ELT (J 593) (SC)] iii. Safety Retreading Co. (P) Ltd. Vs. CCE, Salem [2017(48) STR 97 (SC)] 5. After considering the submission of the learned AR and perusal of the impugned order, we find that the process of retreading done by the respondent is not manufacturing process as no new product emerges but it is a process in which the pre-cured tread rubber/tread rubber is affixed on the surface of the worn-out tyres and subjecting the same to a process of curing in tyre mould using steam and this activity fall under the category of 'Maintenance, repairs and reconditioning service'. Further, we find that the Division Bench of this Tribunal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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