Tour operator service tax rejected where hired buses were not licensed as tourist vehicles and used for employee or student transport.

Buses hired for transporting employees and students were not treated as tour operator vehicles where the appellant produced a Regional Transport Officer certificate showing that the buses were not licensed as tourist vehicles, and the Revenue produced no contrary evidence. The Tribunal followed an earlier decision on similar facts and held that mere use as contract carriages did not by itself make the activity taxable as tour operator service. The impugned order was set aside, the demand was not sustained, and consequential relief was granted.

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Issues: Whether the buses hired out by the appellant for transporting employees and students were taxable as tour operator services.

Analysis: The appellant produced a certificate from the Regional Transport Officer showing that the buses were not licensed as tourist vehicles, and the Revenue produced no contrary evidence. The dispute was treated as covered by an earlier Tribunal decision on similar facts.

Conclusion: The activity was not held to constitute tour operator service, and the demand was not sustained.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Buses not licensed as tourist vehicles, when hired for employee or student transport, are not to be treated as tour operator vehicles merely because they operate as contract carriages.

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