Rent-a-cab abatement dispute: excess 90% abatement was held wrongly claimed, sustaining the service tax demand.

In a rent-a-cab operator service dispute, the assessee's service tax return and disclosed receipts were found consistent with availing 90% abatement, while the applicable notification permitted only 60% abatement. The claim of clerical error was rejected because no supporting evidence showed that only the admissible abatement had been taken, and the revised return did not displace the original disclosure. The excess abatement was therefore treated as wrongly availed, and the service tax demand was confirmed.

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Issues: Whether the assessee had wrongly availed abatement at 90% instead of the admissible 60% for rent-a-cab operator service, justifying confirmation of the service tax demand.

Analysis: The service tax return showed the taxable value and receipts in a manner that did not support the assessee's plea of clerical mistake. The adjudicating authority found that the assessee had disclosed figures consistent with availing 90% abatement, while the applicable notification allowed only 60% abatement. No supporting evidence was produced to show that only 60% abatement had been claimed, and the revised return did not displace the original disclosure.

Conclusion: The excess abatement was wrongly availed, and the demand was correctly confirmed.

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