TaxTMI 
TaxTMI 
2024 (5) TMI 891
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....18, whereby the order-in-original confirmed 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 Ma....
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....d notes to its separate customers, as defined under Section 65(B(26). (h) The services provided 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 ....
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.... (c ) Para 3: Appellant to charge a rate of open space for Jaipur @50/- per square feet, at district level bus stand @ Rs.30/- per square feet 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....
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....e aforesaid clauses, we find that the basic and the primary activity undertaken by the appellant was to provide the open space on the roof of the buses for transportation of general goods/small business items and domestic 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 agre....
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.... and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing. 9. The definition above, specifies as to 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 i....
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....red by the definition of "Service" and since the appellant were not engaged in transportation of goods by road service, the service provided was not covered by Clause (p)(i) of Section 66D. On the applicability of the benefit of exemption under Clause 22 (b) of the Notification no.25/2012 - ST, the Authorities took a very hypothetical view to say that the appellant had booked the income from the above service under the head of 'parcel service' and 'postal mail service' and not under the 'hire charges'. The fact is that the agreement here does not speak of parcel or postal mail service. The agreement is clear that the purpose of it is to make available the space on the roof of the buses to M/s Sai Marketing & Loading Co., which is hiring of ....