2016 (3) TMI 13

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....irmed a demand of Rs. 45,247/- for the period April 2001 to September, 2002 along with interest and also imposed penalties under Sections 75, 76, 77 and 78 of the Finance Act, 1994 on the ground that the respondent had provided "Tour Operator" service to IFFCO is in-as-much-as, as per the contract entered with IFFCO, it transported the families and employees of IFFCO from one point to another at an agreed rate and in a luxury bus which had a permit issued under the Central Motor Vehicles Act, 1988 in relation to such vehicles. 2. The Commissioner (Appeals) held that the respondent did not satisfy the definition of "Tour Operator" and therefore was not liable to impugned service tax. 3. The Revenue has contended that as per Section 65 ....

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....al of IFFCO. Generally the vehicle will run between Phoolpur and Allahabad but sometimes it may required to go outside Allahabad also. In such cause you will arrange route permit for that destinations IFFCO will reimburse the charges for route permit when presented with monthly bills." In terms of Section 65 (113) ibid tour means a journey from one place to another irrespective of the distance between such places. We can safely adopt this for our purpose. Thus, there is no doubt that the journey performed by the employees/families of IFFCO clearly fell under the scope of TOUR. The definition of tour operator given in section 65 (52) ibid quoted above clearly shows that the journeys organised by the respondent in its bus clearly made it a....