2012 (11) TMI 787

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....or Services'. They are providing the services using their own vehicles and also using hired vehicles belonging to third parties. (b)  During the course of audit of records, it was found that they have not paid service tax on services rendered using vehicles belonging to other persons. Accordingly, further investigation was undertaken. (c)  On the basis of investigation, a show-cause notice dated 22.06.2004 proposing demand of service tax amounting to Rs. 2,62,762/- along with interest and proposing imposition of penalties under Sections 76, 77 and 78 was issued. There was also a proposal in the show-cause notice to impose penalty on the managing partner. (d)  Original authority confirmed the demand of service tax alo....

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....ot covered under the scope of Tour Operator Services'. They have retained only 5% of the amount as their commission and passed on the balance of amount collected by them including service tax amount to the vehicle owners. Therefore, if at all service tax is payable by them, it should be on the commission retained by them under the category of 'Business Auxiliary Services'. (e)  That they were not paying service tax in respect of the services rendered with vehicles of third parties was a fact which was on record for the past four years prior to investigation/audit. Further, the legal position as to the liability was not clear during the relevant period necessitating amendments and therefore, invocation of extended period of limitatio....

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....ravels and others has held that "the term 'tour' always meant a journey from one place to another irrespective of the distance between such places and that "tour operator" always meant or included a person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 or the rules made thereunder.........From these provisions, it would become abundantly clear that the activities of the assessees who are before us fell within the definition of "tour" and accordingly the assessees fell within the ambit of "tour operator" defined from time to time. Therefore, the arguments made on behalf of the assessees to the effect that they were only transporting passenger and not operating an....