Bus hiring receipts before 01.06.2007 were outside service tax, as rent-a-cab coverage applied only from that date.

Receipts from hiring out buses to APSRTC for the period before 01.06.2007 were held not taxable under Business Auxiliary Service or any other taxable service. The Board's clarificatory circular explained that the rent-a-cab category was expanded from 01.06.2007 to include motor vehicles capable of carrying more than 12 passengers for hire, and only from that date did service tax apply to renting of buses under that category. For the earlier period, mere renting of buses was outside the taxable net, so the assessee succeeded.

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Issues: Whether the consideration received for hiring out buses to APSRTC during the period prior to 01.06.2007 was taxable under Business Auxiliary Service or any other taxable service.

Analysis: The Board's clarificatory circular stated that with effect from 01.06.2007 the scope of 'cab' was expanded to include motor vehicles capable of carrying more than 12 passengers for hire, making service tax applicable to renting of buses under the rent-a-cab category from that date onwards. The circular further clarified that for the earlier period, mere renting of buses was not taxable under Business Auxiliary Service or any other taxable service.

Conclusion: The receipts for hiring out buses prior to 01.06.2007 were not taxable under Business Auxiliary Service or any other taxable service, and the assessee succeeds.

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