Tour operator service covers only planned or arranged tours after amendment; mere transport by stage carriage buses is outside the levy.

Service tax under tour operator service, after the 2004 amendment, applies only where the provider plans, schedules, organises or arranges tours, or conducts tours in tourist vehicles. Mere transportation of employees and groups by stage carriage buses, without any tour planning or package-tour activity, falls outside the amended definition. On that basis, the demand and consequential penalties were held unsustainable, and the lower orders were set aside.

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Issues: Whether the appellant's activity of transporting employees and groups of persons by stage carriage buses, without planning, scheduling, organising or arranging tours, fell within the amended scope of tour operator service under the Finance Act, 1994.

Analysis: Prior to the amendment, tour operator service was confined to tours conducted in tourist vehicles. By the Finance Act, 2004, with effect from 10-9-2004, the definition was expanded to cover persons engaged in planning, scheduling, organising or arranging tours by any mode of transport, while the existing levy on tours operated in tourist vehicles continued. The Board's circular clarified that the expansion was intended to extend the levy to package tour operators and not to every provider of transport. The appellant merely provided transport and did not undertake the planning or organisation of tours. Its buses were stage carriage vehicles and were not shown to have been used as package tours within the amended meaning.

Conclusion: The appellant's activity did not attract service tax under tour operator service, and the demand and consequential penalties were not sustainable.

Final Conclusion: The order of the lower authorities was set aside and the appeal was allowed.

Ratio Decidendi: After the 2004 amendment, service tax as a tour operator is attracted only when the service provider engages in planning, scheduling, organising or arranging tours, or conducts tours in tourist vehicles; mere provision of transport is insufficient.

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