9911796707
TMI Blog2024 (10) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.2016 admittedly governed the parties for the assessment years 2011-12 and 2013-14 respectively, the process adopted by the assessee for the purposes of retreading works involved the incorporation of a tread rubber strip manufactured by it on to the old tyres that were brought by the customers for retreading. The process of works contract apparently involved the scraping of the outer layer of the old tyre so as to make it suitable for the affixation/fusion of the tread rubber strips manufactured by the assessee onto it. There may have been other processes including vulcanization which were necessary for the purposes of effective retreading done on an old tyre. In our view, the processes undertaken by the assessee were sufficient to rob the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable on the sale of retread rubber that was used for the execution of a works contract should be @ 5% as contended by the assessee as against 12.5% / 14.5% as claimed by the Revenue. The assessee was engaged in retreading of tyre by using tread rubber manufactured by it for the purposes of resoling the tyres handed over to it by various customers. In essence, while carrying out the job of retreading, the assessee would use the tread rubber manufactured by it, and incorporate it into the old tyre that was brought by the customer through various processes, and on completion of the said processes, the tread rubber manufactured by it would effectively be fused in an inseparable manner on to the tyre that was brought by the customer. The f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract was not in the form of goods but in some other form since the tread rubber strips used by the assessee had been fused into the old tyres that were brought by the customers and the goods manufactured by the assessee had lost their identity as those goods during the process of the works contract. The Appellate Tribunal, on the other hand, accepted the plea of the assessee and found that the transfer of the goods was in the form of goods and not in some other form. The appeals of the assessee were, therefore, allowed by the Tribunal by the orders that are now impugned before us by the State in these O.T. Revisions. 6. We have heard Smt. Resmitha Ramachandran, the learned Government Pleader appearing on behalf of the State and Sri. Muralee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other form and therefore the Tribunal's view of upholding the rate of tax @ 5% had to be accepted. 8. Per contra, Smt.Resmitha Ramachandran, the learned Government Pleader, would invite our attention to the order dated 29.1.2020 of the authority for clarification to point out that the changed interpretation by the Department came about only because of newer technologies that were noticed in the years 2016 and 2020, and since in the instant Revision Petitions, we are concerned with the assessment years 2011-12 and 2013-14 respectively, it would be the earlier order dated 7.4.2016 that held the field in as much as the assessee's case for the said assessment years are concerned. On a consideration of the rival submissions, we find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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