2019 (6) TMI 1535 - AT - Service Tax

Classification of services - Rent-a-Cab service or not - renting of buses to ONGC for transportation of staff by the appellant who is Gujarat State Road Transport Corporation - HELD THAT - The appellant, as a State Transport Corporation has rented out buses to ONGC - Issue decided in the case of Bangalore Metropolitan Transport 2015 (2) TMI 148 - SC ORDER , wherein the service provider is a Government Transport Corporation and have provided buses on rent to the factories. The Hon ble Supreme Court held that a State Transport Corporation cannot be treated as Rent-a-Cab operator. Demand set aside - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Whether renting of buses to ONGC for staff transportation by a State Transport Corporation amounts to providing a Rent-a-Cab service.

Analysis:
1. The appellant, a State Transport Corporation, rented buses to ONGC for staff transportation. The issue was whether this activity constituted a Rent-a-Cab service.

2. The appellant's counsel cited the decision of the Hon'ble Supreme Court in a similar case involving Bangalore Metropolitan Transport. The counsel argued that various Tribunals had also ruled in favor of State Transport Corporations in similar cases.

3. The Assistant Commissioner for the Revenue contended that the services provided by the appellant fell under the Rent-a-Cab category, citing a judgment of the Hon'ble Gujarat High Court in a different case.

4. The Tribunal examined the facts and the precedent set by the Supreme Court in the Bangalore Metropolitan Transport case. The Supreme Court had ruled that a State Transport Corporation providing buses on rent cannot be considered a Rent-a-Cab operator. Therefore, the demand was set aside.

5. Following the Supreme Court's decision and reasoning, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant, the State Transport Corporation.