TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 891
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....ed the demand of Rs.9,10,796/- towards service tax for providing 'parcel booking' and 'postal mail services' under the category of "Business Support Service" was upheld. 2. The appellant is an autonomous body established under the Road Transport Corporation Act, 1950 of Rajasthan and is the sole Government Public Transporter engaged in the State operating large number of buses of various categories. The appellant entered into an agreement dated 23.02.2012 with M/s.Sai Marketing & Loading Company, Jalgaon for providing open space in the carrier of buses for which they were charging the license fee on monthly basis. 3. Show cause notice dated 31.10.2016 was issued for the period, April 2012 to March 2015, as the appellant had provided space....
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....d by the appellant to the Service Recipient are exempted as per Notification No.25/2012 under Clause 22. 5. On the other hand, the learned Authorised Representative relied on the findings of the Commissioner (Appeals) that as per the agreement, only the space on roof of the buses has been given on hire and not the means of transportation that is bus has been given on hire, as the bus is primarily meant for carrying the passengers, and therefore, cannot be called a means of transport of goods. Moreover, the appellant has booked their income under 'parcel service' and 'postal service' and not under 'hire charges'. 6. Having heard both sides and perused the records of the case, we find that the issues raised in the present appeal are:- 1. ....
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....et and at other bus stands @ Rs.20/- per square feet per month and accordingly the Depot Committee will allot open space from the Second Party. The Second party shall bear the cost of construction of shed (tin/fibre sheet) for storage of parcels by the Second Party. Electricity charges post installment of new electricity meter/service meter shall be additionally payable as per the Rules, license fee and electricity consumption charges shall be deposited monthly by the Second Party in the concerned Chief Manager Office. (d) Para 5: Validity of agreement for 3 years with License Fee defined. (e) Para 6: Liability in case of damage to parcels due to delay/natural calamity or missing etc. to be borne by the Second Party. (f) Para 7: Re....
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....ic items. For providing the space on the buses, the appellant has been charging the license fee on monthly basis at the specified rates from M/s Sai Marketing and Loading Co. Therefore, under the agreement, the nature of activity to be performed by the appellant was limited only to provide the space on the roof of the buses and the entire work relating to booking, transit, delivery, loading, unloading of parcel, and specific allied service were the sole responsibility of M/s Sai Marketing & Loading Co. The purpose of the agreement is to allow M/s. Sai Marketing & Loading Co. to utilise the space available on the roof of buses for keeping parcels to be transported. Similarly, under the agreement, the appellant is also required to provide ope....
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.... what constitutes support services of business. On perusal thereof, we do not find that the activity of providing open space on hire can be included in any of the activities specified in the definition. The Revenue has nowhere substantiated that the appellant managed distribution and logistics of M/s Sai Marketing & Loading Co., rather in terms of the agreement, they are themselves responsible for all the related activities. The terminology "managing distribution and logistics" cannot be invoked to cover the instant activity under the definition of "Business Support Service". Thus, the answer to issue no.(i) and (ii) are decided against the Revenue and in favour of the appellant. 10. We may now consider the issue of exemption under Clause ....