2015 (9) TMI 833 - AT - Service Tax

Demand of service tax - Rent a cab service - Held that - Tribunal in the case of M/s Shree Gayatri Tourist Bus Service Vs Commissioner of Central Excise, Vadodara-I - 2012 (5) TMI 126 - CESTAT, AHMEDABAD LB on the identical issue in respect of demand of service tax under Rent-a-Cab in connection with the agreement with ONGC, set aside the demand and allowed the appeal filed by the assessee. The learned Advocate on behalf of the assessee submits that the said decision came after passing of the instant Adjudication order. On perusal of the Adjudication order, we find that the Adjudicating authority had not given any finding on the demand of service tax for the period April 2000 to March 2002. It is noticed that the Appellant contested the demand on limitation as well as on merit. The Appellant also filed an application for additional grounds with various documents in support of their contention that the demand is barred by limitation and also not sustainable on merit. In our considered view, the matter should be re-examined by the Adjudicating authority in the light of the decision of the Tribunal in the case of M/s Shree Gayatri Tourist Bus Service (supra) - Matter remnded back - Decided in favour of assessee.

Summary

Issues:
- Demand of service tax for the period from 2000-2001 to September 2004
- Imposition of interest and penalty
- Appeal against confirmation of demand of tax, interest, and penalty
- Appeal for re-quantification of demand and imposition of penalty
- Adjudicating authority's findings on demand of service tax
- Application for additional grounds and documents supporting contentions
- Re-examination of the matter in light of a previous Tribunal decision

Analysis:

The case involved a dispute regarding the demand of service tax, interest, and penalty for the period from 2000-2001 to September 2004. The appellant, engaged in providing cabs to ONGC, had paid tax for a certain period under protest and did not dispute the payment for the subsequent period. The Adjudicating authority confirmed the demand of tax, interest, and penalties. Both the appellant and the revenue filed appeals against the order.

Upon review, the Tribunal noted a previous decision in a similar case where the demand of service tax under "Rent-a-Cab" was set aside. The appellant argued that this decision was made after the current Adjudication order. It was observed that the Adjudicating authority had not specifically addressed the demand of service tax for the period in question. The appellant contested the demand on grounds of limitation and merit, supported by additional grounds and documents.

Considering the lack of findings on the demand for a specific period and the relevance of the previous Tribunal decision, the Tribunal set aside the impugned order. The matter was remanded to the Adjudicating authority for a fresh decision in light of the previous Tribunal ruling. The Adjudicating authority was directed to provide a proper opportunity for hearing before issuing a new order. Both appeals were allowed through remand, and the miscellaneous application was disposed of accordingly.