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2011 (5) TMI 812 - AT - Service TaxLiability of service tax - transportation service - Rent-a-Cab Held that - show cause notice which is the foundation of the proceedings does not show how the carrier shall be called as Rent-a-cab. Without the description of the modalities of transport whether the vehicle was used for transporting passengers or goods the respondents cannot be brought to the fold of the law which is not patent from the show cause notice, Revenue s appeal is dismissed
Issues:
Appeal against discharge of liability of service tax for transportation service under Rent-a-Cab nature. Analysis: The appeal was filed by the Revenue against an order discharging the respondents from the liability of service tax in relation to transportation services provided. The show cause notice alleged that the service provided was of Rent-a-Cab nature, but the appellate authority found that the respondents fell outside the scope of the definition of Rent-a-cab. The Revenue supported the order of the Adjudicating Authority, while the respondents contended that they did not provide a Rent-a-Cab service to a specific company. They argued that the vehicle provided was a Maruti Van without seats for passengers, solely used for transporting goods. The respondents relied on a Tribunal decision in a similar case to support their position. Upon hearing both sides and examining the record, the Tribunal noted that the show cause notice did not specify how the service should be classified as Rent-a-cab. The lack of details regarding whether the vehicle was used for transporting passengers or goods made it unclear how the respondents could be held liable under the law. The Tribunal emphasized that a specific charge was necessary for a valid adjudication, and the vague show cause notice failed to provide the required clarity. Consequently, the Tribunal found the notice to be flawed, leading to the dismissal of the Revenue's appeal. The judgment highlighted the importance of clear and specific charges in legal proceedings to ensure a fair adjudication process.
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