Tour Operator Service classification upheld for contracted point-to-point bus transport, with tax demand, interest and penalties restored.

Supplying buses or mini-buses under contract for point-to-point transport of school children, staff and family members was treated as Tour Operator Service under the service tax law, following earlier Tribunal rulings on similar facts. The exclusive deployment of vehicles for agreed carriage and remuneration brought the activity within the taxable category. The failure to obtain registration, file returns, or pay service tax during the relevant period also supported suppression and non-compliance. The appellate relief was set aside and the Revenue's demands, interest, and penalties were restored.

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Issues: Whether providing buses or mini-buses for transporting school children, staff and family members of a company from one fixed point to another under an agreed contract amounted to Tour Operator Service, and whether the service tax demand, interest and penalties were liable to be restored.

Analysis: The transportation activity was held to fall within the statutory definition of Tour Operator Service under the service tax law, following earlier Tribunal decisions on materially similar facts. The respondents had supplied vehicles exclusively for point-to-point carriage for agreed remuneration, which brought the activity within the taxable category. The absence of registration, returns and payment of service tax during the relevant period further supported the inference of suppression of facts and non-compliance.

Conclusion: The classification as Tour Operator Service was upheld and the relief granted by the appellate authority was set aside, resulting in restoration of the Revenue's demands.

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