Tour operator service tax applies only when tours are run in legally recognised tourist vehicles, not ordinary contract carriages.

Service tax under the tour operator category applies only where tours are conducted in a vehicle that qualifies as a tourist vehicle under the Motor Vehicles Act and the prescribed rules. A tourist vehicle must be a contract carriage constructed, adapted, equipped and maintained in accordance with Rule 128 of the Central Motor Vehicles Rules. Where the vehicles are merely contract carriages and are neither registered nor certified as tourist vehicles, the activity does not fall within tour operator service. On the facts noted, no contrary material was produced, and the classification excluding taxability was upheld.

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Issues: Whether the respondent's vehicles could be treated as "tourist vehicles" so as to bring the activity within the scope of "tour operator" service under the Finance Act.

Analysis: The charge to service tax under the tour operator category depended on the vehicles being tourist vehicles within the meaning of the Motor Vehicles Act. A tourist vehicle is a contract carriage constructed, adapted, equipped and maintained in accordance with the specifications prescribed under Rule 128 of the Central Motor Vehicles Rules. The record showed that the four vehicles were only contract carriages and were not registered or certified as tourist vehicles. No contrary material was produced by the Revenue. The governing principle, as applied, is that a person is a tour operator only when tours are operated in a tourist vehicle and not in any other type of vehicle.

Conclusion: The vehicles were not tourist vehicles and the respondent did not fall within the taxable category of tour operator service. The Revenue's challenge failed.

Final Conclusion: The classification adopted by the lower appellate authority was upheld and the Revenue's appeal was rejected.

Ratio Decidendi: Service tax under the tour operator category applies only where the operator conducts tours in a vehicle that satisfies the legal definition of a tourist vehicle and conforms to the prescribed motor vehicle specifications.

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