2015 (10) TMI 458

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.... the Finance Act, 1994). Out of the total demand, a demand of Rs. 1,12,81,122/- was confirmed under the category of "Travel Agent and Tour Operator" service in tourist vehicles; demand of Rs. 9,18,286/- was confirmed under the category of Business Support Service (BSS) on charges recovered for the goods transported by the appellant on the ground that the goods transported belonged to businessmen and thus related to commercial activity of these businessmen and therefore service rendered was BSS [Section 65 (104c) ibid] and not GTA service. The impugned demand was confirmed invoking the extended period holding that the appellant indulged in suppression of facts. 2. The appellant has contended that (i) out of the total demand under Travel A....

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....ability to pay tax is on the consignor or consignee paying the transport charges. Also, as the freight per consignment was less than Rs. 750/-, it was exempted from service tax. 3. We have considered the facts of the case and contentions of the appellant. As stated earlier, the demand of Rs. 98,424/- in respect of the commission received by the appellant as ticket booking agent for various travel agencies, is not contested. As regards demand of Rs. 9,18,286/- confirmed under BSS, it is seen that this service tax is confirmed on freight charges (luggage booking charges) recovered by the appellant for transportation of goods on its buses. The adjudicating authority has held that such goods which were carried on such buses belonged to busin....

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....ard. Accordingly, the demand of Rs. 9,18,286/- confirmed under BSS is not sustainable. 4. As regards remaining demand under tour operator service, it is a fact that the appellant was granted licence to operate buses as contract carriages and not as stage carriages. The contention of the appellant that it operated its buses as stage carriages does not alter the category of its buses from contract carriages to stage carriages. Tour is defined under Section 65 (113) ibid as under:- "Tour means a journey from one place to another irrespective of the distance between such places." Tour Operator is defined under Section 65 (115) ibid as under:- "Tour Operator means any person engaged in the business of operating tours in a....

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....merits consideration. The said Notification granted full exemption from payment of service tax on the taxable service referred to in Section 65 (105) (n) of the Finance Act, 1994, provided by a tour operator having contract carriage permit or tourist vehicle permit for inter-State or intra-State transportation of passengers, excluding tourism, conducted tours, charger or hire services. Parliament extended the exemption retrospectively upto 01/04/2000 vide Section 75 of the Finance Act, 2011. Prima facie, all the assessees before us are entitled to the benefit inasmuch as the impugned demands are for the period from April, 2000. The adjudicating authorities will have to examine their claim for exemption on merits, untrammelled by our prima f....