2013 (6) TMI 264 - AT - Service Tax

Tribunal Waives Pre-Deposit, Rules in Favor of Appellant on Service Tax Issue

The Tribunal allowed the stay petition, waiving the pre-deposit of service tax liability, interest, and penalties under the Finance Act, 1994. The appeal ... Vehicle on hire - rent-a-Cab service - Held that:- In the absence of any contrary evidence produced by the Revenue that the said vehicle was not a goods transport vehicle, relying upon the affidavit filed by the appellant to state that the said vehicle was a goods vehicle, we hold that any amount received by the appellant towards services rendered by such vehicle to M/s. Torrent Power Limited, by any stretch of imagination, cannot be considered as services rendered under the category of Rent-a-Cab services. - Demand set aside - Decided in favor of assessee. Issues:1. Stay petition for waiver of pre-deposit of service tax liability, interest, and penalties under Finance Act, 1994.2. Disposal of appeal based on a narrow compass.3. Determination of whether the appellant's vehicle hire to M/s. Torrent Power Limited falls under Rent-a-Cab service.4. Evaluation of evidence regarding the nature of the vehicle hired and services rendered.Issue 1: Stay Petition for Waiver of Pre-depositThe stay petition in this case sought the waiver of pre-deposit of amounts confirmed as service tax liability, interest, and penalties under various sections of the Finance Act, 1994. The Tribunal considered the submissions from both sides and decided that the appeal could be disposed of at that stage, leading to the allowance of the application for waiver of pre-deposit, thereby enabling the appeal to proceed for disposal.Issue 2: Disposal of AppealUpon reviewing the submissions during the stay petition, the Tribunal determined that the appeal could be resolved promptly as the matter at hand was confined to a specific scope. Consequently, the Tribunal decided to allow the waiver of pre-deposit and proceeded to take up the appeal for final disposal, indicating a swift resolution based on the limited nature of the issue involved.Issue 3: Classification of Vehicle HireThe crux of the matter revolved around whether the appellant's act of providing a motor vehicle on hire to M/s. Torrent Power Limited constituted a Rent-a-Cab service. The lower authorities had inferred this based on their examination of records and invoices. However, upon scrutiny, it was revealed that there was a lack of concrete evidence regarding the specific vehicle hired, with only an affidavit from the appellant asserting ownership of two goods vehicles, including the one in question. The Tribunal, in the absence of contrary evidence from the Revenue, relied on the appellant's affidavit and a certificate from the RTO to conclude that the vehicle in question was a goods vehicle, thereby negating the Rent-a-Cab service classification.Issue 4: Evaluation of EvidenceThe Tribunal carefully analyzed the evidence presented, emphasizing the importance of the appellant's affidavit and the lack of contradictory proof from the Revenue regarding the nature of the vehicle hired. By considering the specific details provided by the appellant and the absence of conflicting information, the Tribunal concluded that the services rendered by the vehicle to M/s. Torrent Power Limited could not be categorized as Rent-a-Cab services. Consequently, the impugned order was set aside, and the appeal was allowed based on the evidence and arguments presented during the proceedings.This detailed analysis of the judgment from the Appellate Tribunal CESTAT AHMEDABAD underscores the key issues addressed, the Tribunal's reasoning, and the ultimate decision reached regarding the waiver of pre-deposit and the classification of the appellant's vehicle hire services.