2017 (7) TMI 1476

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.... buses and engaged in the transporting facility under the category of "Rent a Cab Scheme Operator Services" to the unit located in SEZ and also to some educational institutions. 2.2 A show-cause notice dated 17.10.2012, was issued for the extended period of 2007-08 to 2011-12 as it appear to Revenue that the Applicants have not paid the service tax amounting to Rs. 7,07,439/-. As it appeared on the scrutiny of record that the applicants have rented buses to Hospitals, Guest Houses and some other Parties, but failed to pay the applicable service tax. It further appears that in so far the renting of their buses to M/s Thomson Press, a unit in SEZ, no service tax have been charged and not paid. As it appears to Revenue that the said service i....

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.... The ld. Counsel for the Applicant points out that the rent-a-cab service provided to a unit in SEZ is fully consumed and the ld.Commissioner (Appeals) has erred in observing that part of the service is not consumed within SEZ, as transport facility provided is for transportation of the employees of SEZ i.e. from the Office to the Residence (Located outside SEZ). It is argued that the services is consumed by the Unit located in SEZ, as the benefit of such service accrues, through the employee, is admittedly received by the appellant located in SEZ. The Applicant also relies on the ruling of the Division Bench of this Tribunal in the case of Norasia Container Lines Vs. Commissioner of Central Excise, New Delhi reported in 2011 (23) STR 295 (....

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....sport Service to the effect that both are engaged in transporting the staff and the student of various schools and accordingly, agreed to sharing spare capacity for transport of the staff and the student of the school, in which they had entered into the transportation contract. As admittedly transportation has been done for the staff and the student of the school, the demand is fit to be set aside. It is further stated that in view of this matter, stay may be granted till disposal of the appeal. 5. The ld.DR. for the Revenue, relies on the impugned order. 6. Having considered the rival contention, in terms of Instruction No. 79 dt. 19.11.2013 issued by M.C. & I. (D.C.), SEZ Division, we find that rent a cab service is an approved service ....