2008 (1) TMI 232 - AT - Service Tax

Rent-a-Cab - Contention of assessee is that the applicant is not the owner of Cab as per Motor Vehicle Act, because he is owner of one Maruti Van and the same is attached to IFFCO - Contention of the Revenue that the applicant has given his van on hire and, therefore, he is liable to service tax, is acceptable - keeping in view the financial hardship, applicant is directed to deposit Rs. 10,000 - pre-deposit of balance amount of duty and the whole of penalty amount is waived

Summary

The Appellate Tribunal CESTAT, New Delhi heard a case regarding waiver of pre-deposit of service tax and penalty amounting to Rs. 89,625. The applicant, who owned one Maruti Van attached to IFFCO, argued that he was not the owner of a cab as per the Motor Vehicle Act. The Revenue contended that the applicant had given his van on hire and was liable for service tax. Considering financial hardship, the tribunal directed the applicant to deposit Rs. 10,000 and waived the balance amount of duty and penalty. Compliance was to be reported by March 12, 2008.