TaxTMI 
TaxTMI 
2009 (2) TMI 90
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....ack under an agreement they had entered into with BHEL. Similar services were rendered to groups of people for tour to various places. The liability of TNSTC to pay service tax for the aforesaid activity during the period 1-4-2000 to 30-9-2004 under the category "tour operator" was adjudicated by the Additional Commissioner vide his Order-in-Original dated 23-12-2005. He had found that during the material period tours conducted using 'tourist vehicles' as defined in clause 43 of section 2 of the Motor Vehicles Act, 1988 read with rule 128 of the Rules framed thereunder alone attracted service tax under the category 'tour operator'. In passing the said order, he had relied on the judgment of the Hon'ble High Court of Madras in the case of Se....
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....towards tour operator service rendered during the material period along with applicable interest. A penalty of Rs. 1,000 was imposed under section 77 of the Act. Equal amount of penalty as the service tax demand was imposed under section 78 of the Act and penalty at the rate of Rs. 100 per day for the delay in paying the tax was imposed under section 76 of the Act. In the impugned order, the Commissioner (Appeals) affirmed the order of the original authority. He found that the definition of tour operator which used to read as follows: 'tour operator' means any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made thereunder;" ....
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....mitation regarding transportation by tourist vehicles only. The liability of service providers like the appellants was not altered by the changes introduced with effect from 10-9-2004. TNSTC also relied on the judgment of the Hon'ble High Court of Madras in the case of Secretary, Federation of Bus-Operators Association of Tamil Nadu (supra), in support of their stand. They argued that the charge of suppression could not be sustained against them. The penalties imposed as well as the demand of interest were not sustainable, The buses of the appellants were issued with stage carriage permit. They were not tourist vehicles and did not possess tourist permit. Their vehicles were used for transport of members of the public from place to place an....
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....efinition of tour operator has been suitably expanded. While the existing levy on tour operators engaged in operating tours in tourist vehicles remains as such, in case of a package tour (which are planned, scheduled, organized or arranged by tour operators), the scope of the levy is being extended by removing the limitation regarding transportation by tourist vehicles only. Such tourist operators would he subjected to service tax irrespective of the mode of transport used during such tours. The abatements (Notification No. 39/97-S.T.) in case of package tour operators (providing transportation and accommodation) would remain at 60 per cent." As per this clarification while the levy on tour operators engaged in operating tours in tourist....