2013 (12) TMI 912 - AT - Service Tax

Transportation of the employees from residences to offices - Service charges collected from the corporate - Tour operators services u/s 65(115) of Finance Act - Waiver of pre- deposit Held that - The benefit of the said exemption would not apply as regards the exemption under notification no. 20/09-ST - the notification excludes from its scope such services if they are of the nature of tourism, conducted tours, charter or hire service the service is rendered on charter/hire basis Prima facie appellant has not been able to make a case for complete waiver Appellant directed to deposit 25% of the amount of duty as pre-deposit upon such submission stay would be granted till the disposal Partial stay granted.

Summary

Issues:
Classification of services under 'tour operators' for transportation of company employees.

Analysis:
The appeal was against an Order-in-Revision passed by the Commissioner of Central Excise, Nashik, regarding the classification of services provided by the appellant, a transportation company, to various corporate clients for the transport of their employees. The department contended that the service is taxable under 'tour operators' services. The appellant argued that they were not liable for service tax under the category of tour operator as they were only providing transportation services for company employees, not organizing tours. They cited relevant legal provisions and precedents to support their case. The Revenue argued that similar cases had been classified as 'tour operators' services in the past and pointed out judgments supporting the levy of service tax in such scenarios. They also contested the appellant's eligibility for exemption under a specific notification. The Tribunal analyzed the definitions and legal precedents related to tour operators' services. They concluded that the appellant's services fell under the category of 'tour operators' as per the amended definition, and previous judgments supported this classification. The Tribunal directed the appellant to make a pre-deposit of a specific amount within a specified period, with the balance of dues waived upon compliance, and recovery stayed during the appeal's pendency. The decision was pronounced in court on a specific date.