Tour operator liable for service tax transporting employees; partial demand time-barred. Deposit Rs. 1,00,000.

The Tribunal found that M/s. Himachal Road Transport Corporation was liable to pay service tax as a tour operator for transporting employees of M/s. Gujarat Ambuja Cement Limited. However, a significant portion of the demand was considered time-barred due to the lack of evidence of intentional evasion. The Tribunal directed the applicant to deposit Rs. 1,00,000 within six weeks, with the balance amount of tax and penalty waived pending appeal disposal, considering the absence of evidence of tax evasion intent.

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Issues: Liability of service tax as a tour operator for transporting employees of a company. Time-bar on the demand amount.

Liability of service tax as a tour operator for transporting employees of a company:
The case involved M/s. Himachal Road Transport Corporation providing transportation services to M/s. Gujarat Ambuja Cement Limited for their employees. The Department contended that the applicant should pay service tax as a tour operator for carrying the workers of the company. The terms "tour" and "tour operator" were examined, and it was noted that they were broad enough to cover the operations conducted by the applicant. However, there was no evidence of an intention to evade tax or suppress relevant facts from the authorities. Consequently, a substantial portion of the total demand, amounting to Rs. 7,59,449/-, was considered time-barred due to lack of evidence of intentional evasion.

Time-bar on the demand amount:
Considering the overall facts and circumstances, the Tribunal directed the applicant to deposit Rs. 1,00,000/- within six weeks and report compliance by a specified date. Upon this deposit, the balance amount of tax and penalty imposed on the appellant was waived, and the recovery was stayed pending the appeal's disposal. This decision was made after a thorough evaluation of the case and the lack of evidence indicating an intention to evade tax obligations.

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