TaxTMI 
TaxTMI 
2020 (9) TMI 791
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....providing taxable services to various customers and realizing the values of the said services, did not disclose the same to the department and thereby have deliberately suppressed the material facts with intent to evade payment of service tax. Accordingly, recovery of Rs. 25,14,763/- & Rs. 3,50,301/- along with interest at appropriate rate and proportionate penalty was proposed. The said proposal got confirmed vide order-in-original No. 52/2008 dated 26.12.2008. The appeal thereof has been dismissed by Commissioner (Appeals) vide Order-in-Appeal No. 19/2009 dated 30.06.2009. This order has been assailed before this Tribunal. 3. We have heard both sides. It is submitted on behalf of appellant that the appellant got registered under the provisions of the Finance Act, 1944. The service receiver failed to pay the service tax against the services received. The turnover is net amount of hire charges without any service tax component. The appellant is having no enforcing power to levy and collect the service tax. It is further submitted that the nature and activity of the appellant/assessee is distinctly contrary to the service mentioned in the charging section 66 of Finance Act 1994 as ....
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....s 2(25) and 2(22) of the Motor Vehicles Act respectively. In plain terms, it can be said that a rent-a-cab scheme operator is made liable to pay service tax. Prior to amendment by Finance (No. 2) Act of 1998, under Section 65(32), the definition of "Rent-a-Cab Scheme Operator" was as follow : "rent-a-cab scheme operator" means a person who is the holder of a licence under the Rent a Cab Scheme, 1988 framed by the Central Government under the Motor Vehicles Act, 1988 (59 of 1988)." After the amendment "Rent-a-Cab Scheme Operator" is defined under Section 65(76) as follow : "rent-a-cab scheme operator" means any person engaged in the business of renting of cabs." The revised definition has made much larger the scope of the earlier definition where a person holding licence with minimum cab of 50 number was termed as rent-a-cab scheme operator. Those having less number of vehicles were neither required to obtain license nor liable to pay any service tax. The question, therefore, arises as to whether, consequent upon revision of definition, those persons engaged in the business of rendering specified service and not covered earlier by the definition of "Rent-a-Cab Scheme Operato....
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....f machinery etc. charge, periodical charge on land etc. reserved to one who is not the owner-free, exempt from rent; roll, register of person's lands etc. with rents due from them; sum of person's income from rents; sum of person's income from rents-service, (tenure by) personal service in lieu of or addition to rent. Take, occupy, use, at a rent; let or hire for rent; be let at specified rent; impose rent on (tenant)." As per MacMilan Dictionary "Rent" means an amount of money that you pay regularly for using a house, room, office etc. that belongs to someone else. As far as word "hire" is concerned, "hire" means "payment under contract for the use of something." "Hiring" is bailment by which the use of thing or the services are contacted for, at a certain price and reward. As per Black's Law Dictionary, "hiring" means "a contract by which one person grants to another either the enjoyment of a thing or the use of the labor and industry, either of himself or his servant, during a certain time, for a stipulated compensation, or where one contracts for the labor or services of another about a thing bailed to him for a specified purpose. Renting means a usually fixed periodi....
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....ersons desirous of driving by themselves or through drivers, either for their own use or for matters connected therewith, nature of services provided while hiring and renting is the same such that such services are taxable - Fact that legal possession of vehicle not handed over to person renting the vehicle, such that de jure possession continues with owner/provider of service, would not exclude the service from tax net. Thus, respondent cannot escape tax liability on ground that hiring is different from renting as intention of Government is to tax service provider of a service which involves both hiring and renting of a cab for a longer duration. Further, even those persons, natural or juristic, who do not have exclusive control over the vehicle, can be taxed thereto - Respondent was, thus, liable for Service Tax. However, invocation of extended period requires deliberate act of suppression or mala fide intention, which was not there as service having been recently brought under the tax net, there was ambiguity prevailing in respect of the same. Thus, order of Tribunal disallowing invocation of extended period, proper - Sections 65(91), 65(105)(o), 68 and 73(1) of Finance Act, 199....
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....r, at a certain price and reward. Hiring is also engaging services or wages or other payment. It also amounts to engaging for temporary use. On facts, Legislature not having made distinction between hiring and renting for levy of Service Tax, Rent-a-Cab Scheme Operator liable there for " 8. Even Principal Bench of this Tribunal in the case of Carzonrent (India) Pvt. Ltd. Vs. Commissioner of Service Tax, Delhi reported at 2017(50) STR 172(Del) has heldthat taxable service means any service provided or to be provided to any person by a rent-a-cab scheme operator in relation to renting of a cab. No reference to period of renting in statutory provisions. Liability to tax arises when a rent-a-cab operator provides a vehicle to another person on rent and receives consideration. Nature of arrangement may vary from party to party. Premium for insurance paid by appellant, who have effective control of insured vehicles. Maintenance and repair charges of vehicles paid by assessee and even workshop in which the vehicle has to be serviced decided by it does not make any difference. Clients never became owners of cabs but can only use cabs as long as they are paying rent to assessee for such us....