2003 (3) TMI 2 - SC - Service Tax

Service Tax (1) Stage carriage operators (2) Contract carriage operators (3) Motor Cab owners or Maxi Cab operators (4) Tour operators or rent-a-cab operators

Summary

The Supreme Court dismissed the Petition for Special Leave to Appeal filed by Tamil Nadu Tour Vehicle Owners & Operators Assn. against the Madras High Court judgment. The Madras High Court held that service tax is leviable on owners of reserve vehicles under stage carriage permit used as 'Contract carriage'. The High Court also stated that a tourist permit is not required for contract carriage operators, only the use of the vehicle in tours. Additionally, the High Court ruled that service provided by a person in relation to renting cabs is a taxable service under the Finance Act, 1994. The High Court upheld the constitutional validity of service tax on tour operators and rent-a-cab scheme operators, distinguishing it from tax on profession, trade, or calling.