Service tax payable only on service component in case of retreading tyres: Karnataka HC

Tyresoles (India) Pvt. Ltd. Vs Union of India (Karnataka High Court) Karnataka High Court held that in case of service of retreading tyres, service tax is payable only with respect to the service component under the Finance Act. Service tax is not payable on the entire gross value. Hence, petition partly allowed. Facts- The petitioner carries on the business of retreading tyres, which is a process whereby tread rubber is affixed to worn out tyres by bonding in order to reinforce them for further use. It is the case of the petitioner that the said activity involves various stages wherein the ma...