https://www.taxtmi.com/caselaws?id=270144 A vehicle-hiring arrangement is not taxable as rent-a-cab service where the owner retains possession and control of the vehicle and merely provides transport. The decisive distinction is between renting a cab, in which the hirer obtains possession and control and may use the vehicle freely, and a pure hiring contract, in which control remains with the owner. The Motor Vehicles Act, 1988 and the Rent A Cab Scheme, 1989 were treated as supporting that distinction. On this basis, the later High Court view was followed, the contrary Tribunal view was rejected, and the service tax demand was held unsustainable on merits. en-us Tue, 11 Aug 2015 00:00:00 +0530 Fri, 15 Jan 2016 12:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=270144 A vehicle-hiring arrangement is not taxable as rent-a-cab service where the owner retains possession and control of the vehicle and merely provides transport. The decisive distinction is between renting a cab, in which the hirer obtains possession and control and may use the vehicle freely, and a pure hiring contract, in which control remains with the owner. The Motor Vehicles Act, 1988 and the Rent A Cab Scheme, 1989 were treated as supporting that distinction. On this basis, the later High Court view was followed, the contrary Tribunal view was rejected, and the service tax demand was held unsustainable on merits. Case-Laws Service Tax Tue, 11 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=270144