2008 (12) TMI 49

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....the Motor Vehicles Act, 1988; they were using the vehicles for transporting students to and from schools. 3.2 The original authority held that the appellant was rendering taxable service under the category of 'Tour Operator' and confirmed service tax amounting to Rs.41,797/- along with interest and imposed penalties under various sections. 3.3 Commissioner (Appeals) upheld the order of the original authority. 4. Learned Advocate submits that the appellant was plying vehicles which had Stage Carriage Permit and they cannot be treated as that of a contract carriage and therefore, they cannot come under the category of Tourist Vehicle and therefore, their activity cannot be treated as Tour Operator. He relies on the following decisions in ....

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....of the Motor Vehicles Act and in no other type of vehicle and, therefore, necessarily such vehicle must conform to the conditions prescribed under Rule 128 of the Central Motor Vehicles Rules." Their Lordships have categorically held that first to hold for a person to be considered a tour operator, he must be operating a tourist vehicle in terms of Section 2(43) of the Motor Vehicles Act read with Rule 128 of Central Motor Vehicle Rules. The evidence produced before the lower authorities and before us indicate that the respondent is not operating 'tourist vehicles' as per Section 2(43) of Motor Vehicles Act, read with Rule 128 of Central Motor Vehicle Rules. 8. The judgment relied upon by the learned SDR in the case of Sri Pandyan Travels....