2007 (9) TMI 663

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....sh ORDER P.G. Chacko, Judicial Member - In the impugned order, the Commissioner has demanded service tax of over Rs. 73 lakhs along with education cess from the appellants for the period July 2003 to September 2006 and has also imposed on them penalties under various provisions of the Finance Act, 1994. 2. After examining the records and hearing both sides, we note that, during the above ....

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....ingly, held that they were liable to pay service tax on the amounts collected by them from the railway administration in respect of AC 2 tier and 3 tier passengers and directly from the first class passengers during the above period. The case of the appellants, put forward today by ld. consultant, is that they were only rendering a 'hire service' and not any 'business auxiliary service....

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....ration to the submissions, we note that, prima facie, the service rendered by the appellants on behalf of the railway administration to AC-2 tier/3 tier passengers in the specified trains was in the nature of a 'customer care service' inasmuch as, admittedly, the passengers were customers of the railways and for the services rendered by the appellants, they were rewarded by the railways. H....