2009 (8) TMI 742 - AT - Service Tax

CESTAT Waives Service Tax Pre-Deposit, Rules in Favor of Bus Operator

The Appellate Tribunal CESTAT, AHMEDABAD, allowed the appeal, waiving the pre-deposit of service tax and penalties amounting to Rs. 26,82,837 against the ... Waiver of pre-deposit - Tour Operator - definition of Tour Operator changed - prior to 10-9-2004, vehicle must be registered as a Tourist Vehicle - period post 10-9-2004, the appellants contended that they were not arranging tours but plying buses – Held that: - no tour was being arranged by them, they cannot be held to be covered by the said services - order is also assailed on the point of limitation – pre-deposit waived - recovery stayed The Appellate Tribunal CESTAT, AHMEDABAD, consisting of Ms. Archana Wadhwa and Shri B.S.V. Murthy, heard an application to waive the pre-deposit of service tax and penalties totaling Rs. 26,82,837 against the appellants, who were treated as a 'Tour Operator' by the lower authorities. The tribunal noted a distinction in the definition of a Tour Operator before and after 10-9-2004, emphasizing the requirement for a vehicle to be registered as a Tourist Vehicle to fall under this category prior to the said date. Post 10-9-2004, the appellants argued that they were not arranging tours but merely providing bus transportation, citing a previous Tribunal decision. The order was also challenged on grounds of limitation, with the demand period spanning from 1-10-2004 to 13-10-2006 and the show cause notice issued on 19-4-2007. The tribunal found merit in the appellant's arguments on both the merits and limitation, thus dispensing with the pre-deposit condition and staying the recovery during the appeal process. The decision was dictated and pronounced in court.