Tour operator service tax applies only to tourist vehicles; stage carriage buses used for school transport fall outside the levy.

Use of stage carriage buses to transport school students was not taxable as tour operator service because liability arises only where an operator conducts tours in a tourist vehicle that satisfies the governing motor vehicle law and prescribed conditions. Buses operating under stage carriage permits are distinct from tourist vehicles, and the record showed these buses were not used as tourist vehicles. On that basis, the activity fell outside the tour operator category and the service tax demand could not be sustained.

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Issues: Whether the use of stage carriage buses for transporting school students constituted taxable service as a tour operator service.

Analysis: Liability as a tour operator depends on the operator engaging in tours in a tourist vehicle within the meaning of the governing motor vehicle law and conforming to the prescribed conditions. Vehicles operating under stage carriage permits are distinct from tourist vehicles, and the material on record showed that the buses in question were not used as tourist vehicles. The circumstances matched earlier decisions holding that such activity does not fall within the tour operator category.

Conclusion: The activity did not amount to taxable service under the tour operator category, and the service tax demand could not be sustained.

Ratio Decidendi: A person is liable as a tour operator only if engaged in operating tours in a tourist vehicle that satisfies the statutory conditions; buses used as stage carriages do not, by that fact alone, become tourist vehicles for service tax purposes.

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