2018 (8) TMI 1281

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....in are registered with the service tax Department for taxable service of Rent-a-Cab Operator. They have neither filed the statutory returns nor discharged the correct service tax liability filed by the appellant. It is alleged by the Department they provided taxable services and collected charges for vehicles but were not paying the same to the Government. Therefore, officers conducted investigation and a show cause notice was issued by the Joint Commissioner asking why an amount of Rs. 16,17,586/- leviable on the value of tax provided by them should not be recovered under provisions of Section 73 of the Finance Act, 1994 along with interest under Section 75. They were also asked as to why an amount of Rs. 2,54,839/- which they collected se....

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....the turnover indicated in the balance sheet includes the commission received for vehicles supplied to other cab operators. b) the Department ought to verify whether the other cab operators had discharged the service tax or not. c) they did not have any intention to evade duty and the payments were not made because the service receivers M/s BSNL and M/s BDL did not reimburse the tax amount. d) the imposition of penalties under 76 to 78 are not tenable in the absence of clear cut findings on the intention to evade payment of service tax. 5. They further explained before the Learned Commissioner (Appeals) that the hire charges indicated in the balance sheet represent the amounts received by them from M/s BSNL and BDL and other cab ....

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.... into the nature of work. It is a fact that the income tax returns were prepared on the basis of accrual of amounts and ST-3 returns filed on the basis of receipt. He also sought to challenge the service tax liability on the service rendered by them. He relied upon in the case laws of: i) M/s Andhra Pradesh State Road Transport Corporation [2018 (10) G.S.T.L. 504 (Tri. Hyd.)] ii) M/s Santhi Arts Hi-Tech Medias Ltd., in Final Order No. A/31903/2017, CESTAT- Hyderabad. iii) Commissioner of Customs & Central Excise, Vs. Sachin Malhotra [2015 (37) S.T.R. 684 (Uttarakhand] iv) Rahul Travels Vs. Commissioner of Central Excise [2017 (47) S.T.R. 332 (Tri.-Mum)]. They argued that the appellant is not liable to service tax at all. 8....