<b>Brief case:</b> Service tax not to cover materials

A weekly selection of key court orders

In service and maintenance contracts, cost of parts and materials used are excluded for evaluating service tax, the Supreme Court has held in a batch of appeals from different states referring to companies retreading tyres. It reversed the finding of the excise appellate tribunal that it is the entire of the gross value of the service rendered that is liable to service tax. The tribunal had maintained that there is no sale or deemed sale of the parts or other materials used in the execution of the contract of repairs and maintenance. The court stated that several government notifications like