2019 (2) TMI 1030

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....n the manner indicted in the following chart :- Sl. No. SCN No./date OIO No./ Date Value of taxable service Amount of service tax confirmed Amount of penalty imposed 1. S.Tax/SCN/Rent-a-cab/JBP/AE/04 /200212383 dated 10/09/04 DC/JBP/ST/ ADJ/72/05-06 dated 13/06/05 1600200/- 109612/- Under Section 76 - Rs. 109612/-, Section 78 - Rs. 109612/- 2. S.Tax/O.Case/ CAB/Wild/JBP/ 05/11252 dated 14/09/2005 AC/JBP/ST/ ADJ/319/ 05-06 dated 24/03/06 5419530/- 351672/- Under Section 76 - Rs. 351672/-, Section 78 - Rs. 703344/- 2. It was alleged by the department that the appellant had not declared the correct taxable value of rent a cab service as they had been providing cab on higher basis to West....

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.... of time for some consideration. Vehicle being at disposal and under control of client - can operator providing can with driver for going from one place to another on per kilometer basis or on lumpsum amount based on distance is providing transport service, control of vehicle remaining with cab operator/driver - latter service is outside purview of Rent-a-cab operator service - Matter remanded to ascertain facts. Section 65 (91) and 65 (105) (o) of Finance Act, 1994". 6. In view of above order of this Tribunal, the Original Adjudicating Authority by order dated 29/05/2012 has confirmed service tax amount of Rs. 4,61,284/- under Section 73 of the Finance Act, 1994; penalty of an equal amount has also been imposed individually both under S....

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....ecially in Commissioner of Customs and Central Excise, Meerut - I vs. R.S. Travels - 2015 (38) S.T.R. 3 (Uttarakhand) and CCE vs. Sachin Malhotra - 2015 (37) S.T.R. 684 (Uttarakhand) and a decision of this Tribunal in the case of CCE, Nagpur vs. P.B. Bobde - 2015 (40) S.T.R. 953 (Tri. - Mumbai). 8. We have also heard the learned Departmental Representative who has submitted that the decision of this Tribunal in the case of R.S. Travels vs. Commissioner - 2008 (12) S.T.R. 27 (Tribunal) has been discussed by Hon'ble Gujarat High Court and same has been reversed by the High Court in the case of CST vs. Vijay Travels - 2014 (36) S.T.R. 513 (Guj.). It is his submission that the same cannot be relied upon for deciding the taxability of rent-a-....

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....ofit and loss account are accountable for activity of rent a cab service. We find that the appellant has been changing its stand before various authorities in an attempt to get out of the service tax liability. At one stage they argued that they did not own the required number of vehicles for providing rent a cab service and were providing cars only on commission basis. We find that the appellant has been providing rent a cab service and they have not discharged their service tax liability on the same. The decision in the case of Commissioner of Customs & Central Excise, Meerut - I vs. R.S. Travels - 2015 (38) S.T.R. 3 (Uttarakhand) is of no help to the appellant as same has been considered in the case of Vijay Travels (supra), and a contra....

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.... said that the petitioner cannot escape tax liability on the ground that the hiring is different from renting as the intention of the Government is to tax service provider of a service which involves both hiring and renting of a cab for a longer duration and distinction as sought to be carved out by the petitioner is not finding favour with this Court. 21. In view of the discussion above, it is to be concluded that the service tax which was introduced for levying the tax on certain taxable services as such services contributed substantially to Gross Domestic Product (GDP) and rent-a-cab service is specifically covered under the tax net. The question Nos. I and II needs to be answered this wise that the services provided by the respondent....

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....ill be available to persons who receive payment in the convertible foreign exchange. This apart, the benefit of the notification may have been availed of by M/s Ess Dee Travels Express Pvt. Ltd. 17. The appeal is, therefore, without any merit. It is, accordingly dismissed. (Operative part of the order pronounced in the open court.) ============= Document 1 FORM Ne 10 CCAE (See sub-rule (6) 18.884) Certificate from a person meking payment to an assesses angaged in the business of a hotel, or of a tour opeater or the travel agent, out of Indian Currency obtained by conversion of foreign exchange received from or on behalf of a foreign tourist or a group of tourists Name of hotel/tour operator/travel agent making the pay....