TaxTMI 
TaxTMI 
2026 (4) TMI 1588
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....ere in, was engaged in providing Rent-a-Cab Service to M/s Rajasthan State Road Transport Corporation (RSRTC). The department observed the activity to be taxable, Rent-a-Cab Service. But the appellant had neither taken service tax registration nor had filed the ST-3 returns. The appellant was found to have received amount of Rs. 26,45,703/- (after 60% abatement on the gross value of Rs. 66,14,256) during the period from April 2007 to September 2009. Alleging service tax liability of the appellant on the said amount and willful suppression on part of appellant that the show cause notice bearing number 127/2011/673 dated 18-06-2012 was served upon the appellant invoking the extended period of limitation and proposing the demand of service tax....
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....llowing decisions of the Tribunal are relied upon: - a. Shree Gayatri Tourist Bus Service V/s CCE 2013 (29) STR 499 (Trib.LB) b. CCE V/s Sachin Malhotra 2015 (3) STR 684 3.1 It is further submitted that hon'ble Allahabad High Court in the case of Anil Kumar Agnihotri V/s CCE, 2018 (10) GSTL 288 (decided on 02.01.2018) has distinguished above decision and held that it is rent a cab service irrespective of retaining possession and control of vehicles therefore, services rendered were taxable under rent a cab service and chargeable to tax. Tribunal followed this decision which resulted into contradictory decisions of the Tribunal. Matter was accordingly referred to the larger bench. In the case of Shree Gayatri Tourist Bus....
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....eable. The said circular has been upheld and the activity in question is held to be taxable Rent-a-Cab service. Non-payment of service tax and not even getting registered is definite act of evasion of tax by suppressing relevant fact. Hence the Commissioner (A) has rightly upheld the invocation of extended period. While reiterating the findings of the impugned order, the appeal is prayed to be dismissed. 5. Having heard the rival contentions and from the documents on record including appeal memo/ grounds of appeals, the relied upon case laws, it is observed & held as follows: - 1. As per contract, between appellant and M/s Rajasthan State Road Transport Corp. (RSRTC) the appellant had to provide the bus along with the driver, an....
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.... "Moreover, what is taxable is the activity of renting of a cab by a rent-a-cab scheme operator. Ordinary meaning of the word "to rent" is allowing the use of something one owns in exchange for payment. Therefore the test for ascertaining whether an activity is covered by the entry "rent-a-cab operator's service" is as to whether it involves giving the cab, with or without driver, to a client for a certain period of time for some consideration, which can be on per hour or per day or per month basis, with a cap on the total run of the vehicle during the period of renting, if the cab operator also provides the fuel, and during the period of renting the vehicle is at the disposal and under the control of the client, he may use it to t....
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....olved interpretation of law regarding taxability of the service of hiring of buses. On this issue various cases have been decided and though finally it was held that the hiring of the buses also falls under Rent-a-Cab Service though the demand was set aside on the ground of time bar. 7. While coming to plea of limitation though appellant has taken excuse of bonafide belief but it is observed that clarity was given in the year 2007 vide circular number 4/2007 dated 13.06.2007 which did away with all ambiguities. The demand in the present case is for the period 2007-2008 to 2009-2010/ i.e. after the said circular. 8. In the present case, as already observed above the appellant had to provide the bus to RSRTC along with the driver and al....