2017 (9) TMI 797

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.... against the order dated 24.07.2015 of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The dispute in this appeal relates to service tax and penalty for the period April 2001 to September 2002. The appellant had supplied a bus to IFFCO to carry its employees and family members from the factory premises at Phulpur to Allahabad and vice-versa and even for other destinations occasionally as may be notified if necessary, from time to time. The appellant failed to get himself registered under the Act and to file returns in respect of the services so provided by him. The Adjudicating Authority vide order dated 13.05.2008 held that in view of the agreement between appellant and IFFCO as a 52 seater luxury bus was provi....

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....tion of the tour operator as it is stood at the relevant time? (2). Whether under the facts and circumstances of the case, the imposition of penalty by the Adjudicating Authority without assigning any reason is justifiable or not?" In respect of question No. 1, three aspects are required to be considered. First, whether the appellant is using the 'tourist vehicle' for providing the above services; Second, whether the appellant is a 'tour operator'; Third, whether the services provided by the appellant are taxable services under the Act . There is no dispute to the fact that service provided to any person by a 'tour operator' in relation to a tour are taxable service as per Section 65 (105) (n) of the Finance....

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....gs provide for the structure of the vehicle, entrance and exit of the passengers, emergency exit, driver entry and exit, windscreen, rear windscreen, windows, ventilation and luggage holds at the rear or at the sides or both, of the vehicle with sufficient space and size, luggage racks, seats and seating arrangements letting etc. The luxury bus used by the appellant ex-facie meets all the above specifications and as such it is not only a contract carriage but a tourist vehicle as defined under the Motor Vehicle Act. The Tribunal has recorded a finding that it is no ones case that the vehicle provided by the appellant do not conforms with the specifications mentioned under Rule 128 of the Rules and that the appellant has rendered servi....