2008 (12) TMI 73 - AT - Service Tax

Vehicles provided for transporting the client s employees - contention of respondent is that the vehicle in question is falling under the category of private bus u/s 76 of Motor Vehicles Act - It is also contended that the vehicle is granted permission under the category of Private Service Vehicle u/s 2(33) of Motor Vehicles Act - respondent s vehicles not covered by description of tourist vehicles - respondents are not covered in category of Tour Operator Service demand not sustainable

Summary

Issues:
1. Whether the respondent provided taxable service as a "Tour Operator Service" by providing their vehicle to transport employees.

Analysis:
The case involved a dispute where the respondent provided their vehicle to transport employees, leading to an allegation of providing taxable service as a "Tour Operator Service." The Adjudicating Authority confirmed a tax demand of Rs. 1,37,951/- and imposed an equal penalty. However, the Commissioner (Appeals) set aside the Adjudication Order, prompting the Revenue to file an appeal.

Analysis:
During the hearing, the respondent argued that the vehicle in question fell under the category of a private bus under Section 76 of the Motor Vehicles Act. The respondent's counsel highlighted the Registration Certificate issued by the Motor Vehicles Department and contended that the vehicle had permission as a "Private Service Vehicle" under Section 2(33) of the Motor Vehicles Act.

Analysis:
The Revenue relied on decisions of the Hon'ble Madras High Court to support their case. However, the Tribunal referred to a previous judgment in the case of Commissioner of Central Excise and Customs, Vadodara-II v. Gandhi Travels. The Tribunal emphasized that for a person to be considered a tour operator, they must operate a tourist vehicle in accordance with the Motor Vehicles Act and Central Motor Vehicles Rules.

Analysis:
The Tribunal found that the respondent's vehicles did not meet the criteria of "tourist vehicles" as per the Motor Vehicles Act and Central Motor Vehicles Rules. Referring to the judgment in the case of Gandhi Travels, the Tribunal upheld the Commissioner (Appeals)'s decision, rejecting the Revenue's appeal. The cross-objection was also disposed of accordingly.

This detailed analysis of the judgment highlights the key arguments presented, legal interpretations made, and the final decision rendered by the Appellate Tribunal CESTAT, New Delhi, in the case concerning the classification of the respondent's vehicle service under the "Tour Operator Service" category.