2017 (9) TMI 713 - AT - Service Tax

Rectification of Mistake - Business Auxiliary Services - Rent-a-Cab Operator service - Held that - As regard the claim of the appellant that the service is classifiable under Rent-a-Cab Operator and same is taxable prior to 1-6-2007, we are of the view that in the earlier order this tribunal has classified the service under Tour operator, therefore now the same attained finality, particularly in the appellant s own case, therefore appellant cannot raise this issue at this stage - out of all types of BAS, some service on which tour operator has paid service tax is a matter of fact which needs verification. Penalties - Held that - since in the earlier order involving the same issue, penalties were set aside, following the same, we set aside the penalty. As regard correct service tax liability, the matter is remanded to the original adjudicating authority to pass a fresh order. Application allowed in part and part matter on remand.

Summary

Issues: Rectification of mistake in Tribunal Order

Analysis:
The case involved an application for the rectification of a mistake in the Tribunal Order dated 31-1-2014. The appellant's counsel argued that in a previous order penalties were set aside due to an issue of interpretation, but in the present case, penalties were imposed. Additionally, the liability on Bus Reservation Agreements (BRAs) was not addressed in the previous order, leading to discrepancies in the present case. The appellant contended that BRAs should be classified as a taxable service under "Rent-a-Cab Operator" from 1-6-2007, which was not considered in the original order, indicating an error in the decision.

Analysis:
The Revenue's representative argued that the Tribunal's decision was based on a thorough consideration of all facts and circumstances, and there was no apparent error in the order. The Tribunal, after hearing both sides, noted that while the penalties were imposed in the present order, they were set aside in the previous order due to an interpretation issue. The classification of the service under "Tour Operator" in the earlier order was deemed final, and the appellant could not raise this issue again. The Tribunal decided to set aside the penalty following the precedent of the previous order and remanded the matter to the original adjudicating authority for determining the correct service tax liability in line with the earlier order.

Analysis:
In the final judgment delivered on 16/08/2017, the Tribunal addressed the discrepancies in the penalties imposed in the present order compared to the previous order and clarified the classification of the service under "Tour Operator." The decision to set aside the penalty and remand the matter for determining the correct service tax liability highlighted the importance of consistency in legal interpretations and the need for thorough verification of facts in tax-related cases. The disposal of the Rectification of Mistake (ROM) application in the specified terms underscored the Tribunal's commitment to upholding legal principles and ensuring fair adjudication in tax matters.