TaxTMI 
TaxTMI 
2026 (1) TMI 1517
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.... six more issues. These were (i) Wrong availment of CENVAT credit of the service tax paid on third party insurance of the buses (ii) Non-payment of service tax on contract services i.e. buses supplied to private persons and to State Government departments under "rent-a-cab scheme Operator's service", (iii) Non-payment of service tax on support service of business and commerce; (iv) Non-payment of service tax on bus stand fee (v) Short payment of service tax on the income from rent and canteen contract; and (vi) Short payment of service tax on income from "advertising space or time service". 3. We have heard learned counsel for the appellant and the learned authorized representative appearing for the department and perused the records. We now proceed to examine the each of the issues. Non-payment of service tax on tour operator services. 4. The appellant operates stage carriage buses between various cities/town/villages which service is not exigible to service tax. In addition, the appellant also operates tourist vehicles with All India Tourism permits between Jaipur and Delhi and Jaipur and Agra under an agreement which....
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.... travelling on tours from the appellant but it did not exercise any control in connection with the activity of conducting tours. Therefore, according to the Revenue, the appellant was organizing tours as a tour operator, in addition to providing its regular stage carriage bus service, and had to pay service tax on tour operator service. Since it did not pay the service tax, SCNs were issued and the demands were correctly confirmed on this service in the impugned order. 7. According to the appellant in order to be taxed as the tour operator, the appellant must have done the following: (a) be engaged in the business of planning, scheduling, organizing or arranging tours; (b) make arrangements for accommodation sight-seeing or other services; (c) by any mode of transport; and (d) including any person engaged in the business of operating tours and tourist vehicle by a permit granted under the Motor Vehicle Act. 8. The definition of Tour Operator before 2008 and after 2008 is reproduced below: "Before 2008 "Section 65(115) of the Chapter V of the Finance Act, 1994- "tour operator" means any person engaged in the busine....
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.... and Delhi and Agra and also from point to point within Rajasthan is retained by the appellant. A token amount of 10 paise is given to the RTDC. The question which arises is whether running of buses in this fashion from point to point is covered by definition of tour operator service. According to the appellant, it does not amount to providing tour operator service and hence no service tax needs to be paid. Learned counsel for the appellant relied on the decisions indicated above. We find that the issue in the case of Himachal Road Transport Corporation was different inasmuch as the assessee it was not providing or running tour operator services. It was merely transporting employees of Gujarat Ambuja Cement from residence to factory and on payment of per kilometer basis. In SVR Tours & Travels, however, this Tribunal held that if the assessee is transporting different persons with pre-fixed fare to different destinations in the same vehicle without a common contract, the activity will be more akin to transport of passengers rather than operating tour. Thus, according to SVR Tour & Travels only if a tour is organized for a group through a common planning, scheduling etc., service ta....
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....for using the bus stand. Service tax has been confirmed on the amounts which the appellant had so received from buses of other States. Both sides agree that the issue is covered in favour of the appellant. The demand, therefore, deserves to be set aside. Income received as rent from canteen contractors-service tax demand of Rs. 93,82,017/- 16. Learned counsel for the appellant submitted that he is not pressing this issue. Accordingly, the demand on this count is upheld. Advertising space of time service tax of Rs. 2,28,700/- 17. Learned counsel for the appellant submitted that he is not pressing this issue. Accordingly, the demand on this count is upheld. Service tax on income received from "rent a cab and contract and vendors licence and advertisement space or service 18. Learned counsel for the appellant submits that he is not contesting the demand of service tax on these two amounts. Accordingly, the demand on this count is upheld. Limitation 19. In addition to contesting the demands on merit, learned counsel for the appellant has also challenged the demands on grounds of limitation. It is the submission of the appellant SCN was earlier issued by the depa....