2018 (9) TMI 1069 - AT - Service Tax

Rent-a-Cab Services - provision of taxi services by the appellant to various customers against charges based on per kilometre basis and providing vehicles to companies for transport of their employees - Held that - In the facts of the present appeal, there is no such shedding of control of the vehicles given on hire. Hon ble High Court of Uttarakhand in the case of Commissioner of Customs & Central Excise Vs. Sachin Malhotra, 2014 (10) TMI 816 - UTTARAKHAND HIGH COURT , has held that unless control of a vehicle is made over to the hirer and he has given possession for howsoever short a period to deal with the vehicle, there would be no renting. Appeal allowed - decided in favor of appellant.

Summary

Issues: Taxability under Rent-a-Cab Services for provision of taxi services and providing vehicles to companies for employee transport.

Analysis:
1. The issue in dispute pertains to the taxability under Rent-a-Cab Services for the provision of taxi services and supplying vehicles for employee transport. The Hon'ble High Court of Uttarakhand in the case of Commissioner of Customs & Central Excise Vs. Sachin Malhotra has already settled this issue in favor of the appellant. The court held that unless the control of a vehicle is transferred to the hirer, there is no renting.

2. The present appeal lacks the transfer of control of the vehicles given on hire, aligning with the ruling in the Sachin Malhotra case. The Bench also referred to its previous decisions in similar cases, such as M/s. Wheels Tourists Operator Vs. Commissioner of GST & Central Excise and M/s. Om Sakthi Travels Vs. Commissioner of Service Tax, where the same view was upheld based on the Sachin Malhotra judgment.

3. Consequently, the tribunal held that the impugned order is unsustainable and set it aside, ruling in favor of the appellant.

4. The appeal was allowed with any consequential benefits as per the law. The decision was dictated and pronounced in an open court setting.