2018 (1) TMI 215

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....,03,245/- for the period 01.10.2007 to 31.03.2012 under the category of "Rent-a-Cab-Scheme Operator's Service." The brief facts of the case are that the respondent are engaged in the business of running of "radio taxies" and are providing transport services to both individual and corporate customers. The Revenue held a view that such transport services provided by the respondent, generally termed as "radio taxies", are in two parts, namely, transport services, where the driver of the radio taxies charges the passenger on the spot in car as per the meter reading and second, transport services where instead of taxi driver charging the passenger, invoices raised by the respondent directly on customer on some periodic basis and the settlement i....

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.... the clarification dated 19.06.2006 with reference to radio taxies. He submitted that the corporate clients requested for commercially registered vehicles for transport of their staff as and when required for a fixed period for which payment was made against the invoice at periodical intervals as per mutually agreed terms. There is a difference between the service provided to individual customers and corporate customers. The rate used to calculate the consideration for such corporate clients are not in terms of RTA rules. The contract did not talk about radio taxies but only for the provision of vehicles 24X7 as per the requirement of the corporate client. Contesting the reliance placed by the original authority on certain case laws, the ld....

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....ered view that the contract clause clearly reflect on the facts that the vehicles were given on hire and not on rent in the present case. My above findings are further strengthened by the fact that on perusal of some of the invoices raised by the noticee and submitted by them in their defence clearly suggests that the monthly receipts of the noticee from their clients may vary from vehicle to vehicle and will depend upon the use of vehicle by their clients both individual customer as well as corporate customers and the Kms. Run of the same. I also find that the Hon'ble Tribunal in case of "M/s Vijay Travels" and "Miglani Taxi Service" has held that where the vehicles remain under the disposal and control of owner of the vehicle the same sha....

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....Service'. 36. Also, while dealing with the very similar circumstances as that of the noticee, the Hon'ble Delhi Tribunal in case of CCE, Ludhiana Vs Singh Travels] 2013 (30) STR 96 (Tri.-Del.) held that "In the present case there is no condition of providing of vehicles on terms basis to NFL but was on call basis i.e. one hour from booking time for local duties and with suitable notice time for outside journey. This clearly shows that in the present case there was only a permanent arrangement of providing transport service without renting the vehicles. When the vehicle was running liability to make the payment by NFL was as per rate schedule agreed. Without running or without any call or demand no service was available to NFL. Such distin....