P.K. Das, Judicial Member. - Common issue is involved in these appeals and, therefore, all are being taken up together for disposal.

2. Assessees filed appeals against demand of tax for the period 16-6-2005 to October, 2005. Revenue filed appeals against setting aside of demand of tax for the period 1-7-2003 to 15-6-2005 and penalties by the Commissioner (Appeals).

3. The relevant facts of the case, in brief, are that the assessees are engaged in repairing of used and worn out tyres. The process of repairings, in brief, are that the vulcanizing solution are applied on bald tyre with spray gun and same are allowed to dry for some time. The rubber is than bound on tyre with binding machine. The tyre is thereafter fitted with the rim and placed on the vulcanizing machine wherein compressed Air and Steam are passed to vulcanize the rubber. The tyre after stipulated time are taken out from vulcanize machine and allowed to cool in natural conditions. It is called as re-treading tyre.

4. Service tax was demanded on "repair and maintenance service" introduced on 1-7-2003. Show-cause notices were served on the assessees demanding tax and penalties for the period 1-7-2003 to 10-10-2005. The Adjudicating Authority confirmed the demand of tax and imposed penalties. The Commissioner (Appeals) modified the Adjudication Order insofar as the demand of tax prior to 16-6-2005 and penalties were dropped.

5. After hearing both the sides and on perusal of the records, we find that the service tax on "maintenance and repair services" was introduced on 1-7-2003, which was amended on 16-6-2005. For the purpose of proper appreciation of the case, the definition of the maintenance or repair service is reproduced below:-

With effect from 1-7-2003

"‘Maintenance or repair’ means any service provided by-

(i)any person under a maintenance contract or an agreement; or

(ii)a manufacturer or any person authorised by him, in relation to maintenance or repair or servicing of any goods or equipment, excluding motor vehicles."

As amended on 16-6-2005

"‘Maintenance or repair’ means any service provided by-

(i)any person under a contract or an agreement; or

(ii)a manufacturer or any person authorised by him,

in relation to,-

(a)maintenance or repair including reconditioning or restoration, or servicing of any goods or equipment, excluding motor vehicle; or

(b)maintenance or management of immovable property."

6. On perusal of the above definitions, it is seen that from 16-6-2005, any person is providing any service under a contract for "Maintenance or Repair" liable to pay tax. In the present case, the assessees are repairing old and used tyres. The Commissioner (Appeals) after examining the evidence namely "Order Form" of the assessees held that it is a repair under a contract. We have perused the backside of "Order Form", wherein "Terms" were mentioned. So, we agree with the finding of the Commissioner (Appeals) that assessees are covered under the category of "Maintenance and Repair" service from 16-6-2005. Therefore, the Commissioner (Appeals) rightly modified the Adjudication Order and upheld the demand of tax from 16-6-2005.

7. Ld. Advocate on behalf of the assessees submits that the material cost should not be included in the taxable value. We do not find any force in the submission of the ld. Advocate. On reading of the provisions under section 76 of the Finance Act, 1994, we find that the tax will be paid on the gross amount charged by the service provider for such services provided or to be provided by him.

8. In view of the above discussions, we do not find any infirmity in the order of the Commissioner (Appeals). Hence, all the appeals filed by the revenue and assessees are rejected.