TaxTMI 
TaxTMI 
2017 (4) TMI 338
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....f of M/s SKS Ispat and Power Ltd., Raipur in terms of the contract entered into with them. The schedule of place and timings of operation, to pick up the staff and to drop them in the factory, vice-versa, are decided by the client company. The Revenue entertained a view that such activity of transporting persons by providing bus will be covered under the taxable activity of "tour operator service" liable to service tax in terms of the provisions of Finance Act, 1994. Proceedings initiated against the respondent to demand service tax, resulted in the original order dated 25/01/2012. The Original Authority confirmed the service tax demand of Rs. 12,45,899/- and imposed equal amount of penalty under Section 78 and further penalties under Secti....
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....which states as under :- "tour operator" means any person engaged in the business of planning, scheduling, organizing or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made thereunder. Explanation. - For the purposes of this clause, the expression "tour" does not include a journey organized or arranged for use by an educational body, other than a commercial training or coaching centre, impar....
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....ours. From the documents issued by Regional Transport Authority Raipur on dated 06/03/2010, 01/09/2009, 01/12/2009, 30/05/2009, 03/03/2009, 04/12/2008, 29/08/2008, 06/06/2008, 04/03/2008 in favour of the appellant reveals that permission has been granted to the appellant to run the vehicles as 'city bus service' inside Raipur city, not as tourist vehicles. No permission has been granted by the Regional Transport Authority as tourist vehicles. Further department has also not submitted any tangible evidences that the appellant's vehicles are tourist vehicles registered under Motor Vehicle Act granting permission or license for tourist purpose. Also transport of staff from different places to common destination i.e. factory premises were not a....
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....ribed in this behalf. The Revenue further contended that the favourable judgments of the Tribunal against service tax levy were not accepted by the Department and appeals have been filed and, hence, the issue has not reached in the finality. We note that the reasoning adopted by the Commissioner (Appeals) is clearly supported by the legal provisions and decided case law on the subject. In fact, apart from the cases relied upon in the impugned order, the Tribunal in the case of Capricorn Transways Pvt. Ltd. vs. CCE, Raigad reported in 2015 (37) S.T.R. 1027 (Tri. - Mumbai) held when the vehicle, in question, are not tourist vehicle and are only contract carriage buses not holding tourist permit, no liability to service tax will arise. It was ....