Applicability of Service Tax for PUC of vehicles

[Neeloy Kumar Bakshi]

I am in the business of PUC(Pollution Under Control) for vehicles.Vehicles emit polluting exhaust gases which can be controlled through checking.If a vehicle's exhaust gases do not meet Norms laid down by ARAI then a PUC certificate is not issued & the vehicle owner is advised to service his vehicle or Tune up the vehicle & change the oil as the case maybe & then again chk for PUC to ascertain if the exhaust gases emitted meet the PUC Norms.Then only a PUC Certificate is issued.This helps in reducing or controlling  Air pollution.

Mega Exemption Notifications under Section 66B exempts the following services from the whole of service tax leviable.Pt. no 13(d) ie Services provided by way of Maintenance of a Pollution Control Unit or Plant is wholly exempted from Service Tax.Maintenance is defined as upkeep of property or equipment ( in our case Pollution Control Centre for Vehicular Pollution)

Also PUC is a service offered to a State Govt Authority namely the RTO.Also any activity in relation to any function under Article 243W of the Constitution, pt no 8 ie Protection of the Environment is exempt from Service Tax.

Sir,so can i conclude that our business of PUC is wholly exempted from Service Tax?                                                                                                            

AI Summary

Vehicle PUC Services Exempt from Service Tax under Section 66B and Article 243W; Consider Advance Ruling for Assurance. A business owner in the Pollution Under Control (PUC) sector for vehicles inquired about the applicability of service tax on their services. They referenced Mega Exemption Notifications under Section 66B, which exempts services related to pollution control from service tax. Additionally, PUC services are provided to a state government authority and relate to environmental protection, potentially exempting them under Article 243W. A respondent confirmed the exemption from service tax and advised obtaining an Advance Ruling for future assurance. The business owner expressed gratitude for the clarification and advice.