2026 (8) TMI 1307

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....reby the learned Commissioner has rejected the appeals of the appellant. Since the issue involved in both the appeals are identical, therefore, both the appeals are taken up together for discussions and decisions. We take Appeal No. ST/339/2011 as a lead case. 2. Briefly the facts of the present case are that the appellant was issued a show cause notice dated 19.03.2009 demanding service tax of Rs. 48,724.00 for the period 01.06.2007 to 25.07.2008 on the ground that they had provided taxable services under the category of 'rent-a-cab scheme operator' and had not paid the service tax. The appellant filed reply to the show cause notice and the stand of the appellant was that they had provided the transport services to PRTC for comm....

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....nd the payment was made to the appellant on the basis of covered kilometer as per speedometer log book. He further submits that the buses were provided along with manpower like drivers/cleaners and PRTC does not have any kind of control on the buses and remained in the supervision and possession of the appellant. He also submits that if the vehicle was given on rent to the PRTC then they would have used the buses as per their own choice and for other purposes also and all the expenses incurred in use of motor vehicles would have been borne by them. The buses were not given on rental basis i.e. at the disposal of the hirer during the period of rent. Hence, the demand of tax is not sustainable under "rent-a-cab-scheme operator. He further sub....

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....Supra). In this regard, we may refer to the relevant findings of the decisions of the M/s Gurjant Singh Beant Singh vs. Commissioner of Central Excise and Service Tax, Chandigarh-II vide Final Order No. 60311-60317/2023 dated 30.08.2023, wherein also the identical issue was involved and after considering the nature of the agreement, the Tribunal has come to the conclusion that the appellants therein were not liable to pay service tax under the category of rent-a-cab service as proposed in the show cause notice. In this regard, we may refer to the relevant para reproduced as under: "Ongoing through the agreements relied upon by the appellants, we find that the appellants have simply provided their buses to M/s PRTC on hire and have ....