TaxTMI 
TaxTMI 
2016 (10) TMI 1188
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....d submits that in today's Cause List, there 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 3....
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....ucted or adapted to carry more than twelve passengers, excluding the driver, for hire or reward provided that the maxicab referred to in sub-clause (ii) or motor vehicle referred to in sub-clause (iii) which is rented for use by an educational body imparting skill or knowledge or lessons on any subject or field, other than 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....
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.... be fixed and crossing of such kilometre customer would be liable to pay extra. That is not in the present cases, accordingly it is very much clear that the appellants do not fall under 'rent-a-cab' definition and, accordingly, the impugned orders require to be set aside. (vi) The taxable service definition in this regard is defined under Section 65(105)(o) of the Finance 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 normall....
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.... enter into casual contracts for the purpose of educational trips, election duties, pilgrimage etc. where they charge on kilometer basis. Their main objective and activities remain rendering services between one place(s) to other place(s) within their operation areas, which are fixed in advance and the beneficiaries are general passengers or common people who stay/live or are present in such areas. 8.1. We have to decide mainly the issue that wherever these appellants have provided their buses on individual contract basis - 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 l....
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....70) and motorcab has been defined under Section 65(71) of the Finance Act, 1994. The motor vehicle has been defined under Section 65(73) of the said Act which reads as under :- 'motor vehicle' has the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988), which is : 'motor vehicle' or 'vehicle' means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include 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 ....