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TMI Blog2008 (10) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... i Retreading Company against two orders in original. Vide Order-in-Original No. 14/06 [ADC]-S.T., dated 19-10-06 the original authority had demanded an amount of Rs. 97,851/- being Service tax along with education cess, applicable interest and imposed penalties of Rs. 95,000/- under Sections 76 and 77 together and another Rs. 95,000/- under Section 78, all of the Finance Act, 1994 (the Act). In the other Order-in-Original No. 1/07 [ADC]- KKP dt. 25-6-07, the original authority modified the penalties as Rs. 97,851/- under Section 76, Rs. 1000/- under Section 77 and Rs. 97,851/- under Section 78 of the Act. The order impugned in the appeals affirmed the orders in original No. 14/06 and 1/07. The demand relates to the 'maintenance and repair' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount from the taxable value was admissible. Therefore, their tax liability was considerably lower and in the region of Rs. 30,000/-. As the value of taxable service rendered less abatement came to less than Rs. 4 lakhs, they were exempt from liability to pay any service tax. The original authority did not consider the claim for abatement before him for the reason that no documentary evidence was produced. Even though the assessee had produced invoices for the material period with particulars of admissible abatement and incorporated in the invoices, the same were not accepted as the particulars had been admittedly incorporated subsequent to issue of the invoices. 4. In Order-in-Original No. 1/07 the composite penalties of Rs. 95,000/- eac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellants are eligible for exemption in terms of Notification No. 12/03-S.T., dated 20-6-03 if it produced documentary proof for having sold material to its clients in the course of rendering 'maintenance and repair' service. The assessee is also assessed to Sales Tax and has paid re-sale sale tax for the vulcanizing solution and tread rubber used for rebuilding tyres of its customers during the material period. The assessee is eligible for abatement from taxable value equal to the resale value of the material which had been used in retreading tyres and on which it paid sales tax. The original authority shall allow the benefit of the Notification subject to the assessee furnishing evidence for having sold the inputs used in retread ..... X X X X Extracts X X X X X X X X Extracts X X X X
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