2009 (4) TMI 477

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....quested for supply of list of all contractual assignment entered into between the private parties who have offered their buses on rent basis.   4. The submission of the learned counsel for the petitioner is that by the impugned order, a copy of which has been annexed as Annexure-1 to the writ petition, the respondents had imposed service tax on the buses plied by UPSRTC.   5. However, learned counsel for the respondent relying upon the averments contained in the counter affidavit as well as on the basis of instruction received submits that no service tax has been imposed by the respondents on the buses owned and possessed by the UPSRTC. However, in view of the provision contained in section 65 of the Finance Act, 1994, servi....

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.... within its sweep a situation never intended by the Legislature.   (2) The dominant factor under the definition that determines whether a transport vehicle is used as a contract carriage or as a stage carriage is whether the vehicle is hired as a whole for a fixed or agreed sum under a prior contract express or implied, by a single person or party with the owner of the vehicle.   (3) If once a single contract is entered into expressly or impliedly for the use of the vehicle as a whole, from the mere fact that the leader of the contracting party or one of the persons in the party collected fares from the passengers, which is very often in vogue, the vehicle cannot be said to have been used as a stage carriage.   (4) I....

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....respect of the vehicle.   8. In the present case, it has been submitted by the respondent's counsel that the service tax is being imposed on the basis of individual contract entered into between the bus owner and the UPSRTC. It has been submitted that the individual contracts squarely falls within the definition of 'Rent-a-cab operator services' provided under section 65 of the Finance Act, 1994.   9. The submission made by the respondent's counsel seems to have got force. Even Full Bench judgment of Andhra Pradesh High Court provides that where transport corporation enters into individual contract with the bus owner with plying of their vehicle then such contract shall not fall within the definition of stage carriage but it....