TaxTMI 
TaxTMI 
TaxTMI 
2016 (10) TMI 1188
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.... are only 14 cases of the appellant, KSRTC are listed, whereas six (06) more appeals (Nos. ST/1360/2011, ST/1366 to1370/2011) of the same appellant involving identical issue are pending before this Bench for the decision. Accordingly, the said appeals have also been called for consideration and decision. 1.1. These are total 24 (Twenty four) appeals, where the appellants are M/s Karnataka State Road Transport Corporation (KSRTC) and M/s North West Karnataka Road Transport Corporation (NWKRTC). The details of these appeals are given in Tables 1 & 2 below : Table 1 : The details of the appeals of M/s KSRTC S. No. Appeal Numbers Period involved Service Tax (in Rs.) Penalties (in Rs.) 1. ST/111/2010 01.6.2007 to 31.3.2008 19,94,953 u/s 76 and Rs. 1,000/- u/s 77 2. ST/208/2010 01.6.2007 to 31.3.2008 4,61,641/- u/s 76 and Rs. 1,000/- u/s 77 3. ST/1360/2011 01.4.2009 to 31.10.2009 2,64,537/- u/s 76 and Rs. 1,000/- u/s 77 4. ST/1366/2011 01.6.2007 to 31.3.2009 17,55,289/- u/s 76 and Rs. 5,000/- u/s 77 and Rs. 17,55,289/- u/s 78 5. ST/1367/2011 01.10.2008 to 31.10.2009 11,25,804/- u/s 76 and Rs. 4,000/- u/s 77 6. ST/1368/2011 01.4.2008 to 30.09.2008 1,58,....
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....a commercial training or coaching centre, shall not be included within the meaning of cab. 2.1.1. The Revenue says that with the amendment of the definition of 'cab' with effect from 01.6.2007 any motor vehicle constructed or adapted to carry more than twelve passengers are also covered under the taxable service of 'Rent-a-Cab Scheme Operator Services' and the corresponding taxable service means'any service provided or to be provided to any person, by a 'rent-a-cab scheme operator' in relation to the renting of a cab.' 2.1.2. Revenue further says that the appellants were renting out their buses which have the capacity to accommodate 50-60 passengers. They are renting out their buses on casual contract basis and collecting consideration on minimum charge basis or based on kilometer rate; it appears that such services are covered under the taxable service of 'Rent-a-cab scheme operators service' with effect from 01.6.2007 by the inclusion of any motor vehicle constructed or adopted to carry more than twelve passengers to the definition of 'cab' in terms of Sections 65(91), 65(20) and 65(105)(o) of the Finance Act, 1994 as amended and, therefore, the buses being rented out by them h....
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....nance Act, 1994 which reads as under :- 'taxable service' means any service provided or to be provided to any person, by a rent-a-cab scheme operator in relation to the 'renting of a cab.' (vii) Accordingly, the main ingredients of the above service as per the above Section are : (a) the service provided to any person (b) the service provided by a rent-a-cab scheme operator (c) the service provided in relation to renting of cab. (viii) The 'rent-a-cab scheme operator' is defined under Section 65(91) of Finance Act, 1994. The definition reads as under :- Rent-a-cab scheme operator means any person engaged in the business of renting of cabs. and, accordingly, to be considered as 'rent-a-cab scheme operator', the person should be normally engaged in such business and renting of cabs cannot be merely an incidental activity. Since in the instant cases, renting of buses (assuming it to be cabs), is not the main business, therefore, the appellants cannot be said to be engaged in the business of renting of cabs. (ix) The issue is already settled by the decision of Bangalore Metropolitan Transport Corpn. (BMTC) Vs. CST, Bangalore 2015 (38) STR 976 (Tri), which is uph....
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....asis - Whether such services could be classified as 'rent-a-cab service' or not? In this regard we would be referring to the relevant provisions of the Finance Act, 1994. But before we refer to the said provisions of the Finance Act, 1994, it is to be noted that in the year 2012 on July 01, the concept of negative list was introduced in respect of levy of Service Tax and Section 66D of the Finance Act, 1994 came into force by its insertion in the said Act. An exemption Notification No. 25/2012-S.T. dated 20.6.2012 was issued and further, the Finance Act, 2012 inserted Section 66B in the Finance Act, 1994 which made clear that the service covered under the negative list (given in Section 66D) are not to be taxed. However, we are not considering the impact of these provisions as the period involved in the cases in hand is prior to 01.7.2012, the day when the concept of negative list was introduced. 8.2. We find that the said relevant provisions of the Finance Act, 1994 have been quoted in the Tribunal's Final Order No. 20717/2014 dated 6.5.2014 in the case of Bangalore Metropolitan Transport Corporation (BMTC) Vs. C.S.T., Bangalore [2015 (38) S.T.R. 976 (Tri.-Bang.)]. The para 5 of ....
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....nclude a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding 25 cubic centimetres' 8.2.1. From above provisions, it is clear that 'rent-a-cab scheme operator' has to be a person who is engaged in the business of renting of cab. From the facts on record, it is clear that essential business of the appellants is plying the buses from one place to the other place(s), which are fixed in advance on regular basis. These appellants only on occasional basis [which one of the appellants say is only three per cent (3%) of their total operation] rent out their buses on specific demands from specific customers. We find that subject activities of these two appellants are in the category of the activities of Bangalore Metropolitan Transport Corporation (BMTC), whose appeal on the same subject matter was decided by this Tribunal in the decision of Bangalore Metropolitan Transport Corporation (BMTC) cited supra. The reasons given by the Tribunal in the said order in paragraphs 6 & 7 are applicable to the facts of the present cases. W....