Tour operator service tax applies only to tours run in tourist vehicles with the required statutory permit.

Transportation of employees in buses does not attract service tax as "tour operator" service unless the service provider is shown to be operating tours in a tourist vehicle covered by the statutory permit under the Motor Vehicles Act, 1988. The taxable category requires proof that the vehicle is a tourist vehicle and that it operates under the requisite permit; absent such evidence, the levy cannot apply. On the stated facts, there was no cogent finding that the buses were tourist vehicles or held the necessary permit, so the transportation activity fell outside the tax entry.

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Issues: Whether transportation of employees in buses not covered by a tourist vehicle permit amounted to "tour operator" service liable to service tax under the Finance Act, 1994.

Analysis: Liability under the definition of "tour operator" required proof that the assessee was engaged in the business of operating tours, that the tours were conducted in a tourist vehicle, and that such vehicle operated under a permit granted under the Motor Vehicles Act, 1988. On the record, there was no cogent finding or evidence that the buses were tourist vehicles or that they were covered by the requisite permit. The cited High Court decision was also consistent with the view that vehicles not falling within the statutory definition of tourist vehicle under the Motor Vehicles Act read with the relevant rules would not attract the service tax levy under this category.

Conclusion: Transportation of employees in non-tourist vehicles without the requisite permit did not fall within the taxable category of "tour operator" service; the assessee succeeded.

Ratio Decidendi: Service tax under the category of "tour operator" applies only when the service provider operates tours in a tourist vehicle covered by the statutory permit requirements.

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