2008 (4) TMI 62 - AT - Service Tax

SCN issued proposing demand under Rent-a-cab Scheme Operator Assessee not replied SCN - demand confirmed by original authority vide its ex parte order assessee contends that running buses on hire shall not come under Rent-a-cab Scheme Operator - orders of the lower authorities is set aside & matter remanded to the Original Authority Dept. is also directed to check up the factual position from the RTO authorities regarding category/type of the vehicles used by the appellant

Summary

Issues:
1. Appeal against the order of the Commissioner (Appeals) dated 20-4-2006 regarding demand of tax under 'Rent-a-cab Scheme Operator'.
2. Appellant's contention of not falling under 'Rent-a-cab Scheme Operator' due to running buses on hire.
3. Lack of cooperation by the appellant in inquiries and adjudication ex parte.
4. Request for remand to the Original Authority for fresh consideration and verification of factual details.

Analysis:
1. The appellant challenged the order of the Commissioner (Appeals) dated 20-4-2006, which confirmed a demand of tax under the 'Rent-a-cab Scheme Operator.' The Department received details from M/s. VSNL regarding services rendered by the appellant and the amount of service charges paid. The appellant was issued letters seeking clarifications but did not respond, leading to an ex parte order confirming the demand and penalties. The appellant argued that they were not operating motor cabs or maxi cabs but buses on hire, thus not falling under the 'Rent-a-cab Scheme Operator.'

2. The learned Advocate for the appellant contended that the buses provided by them for transportation of staff should not be categorized under the 'Rent-a-cab Scheme Operator.' The Department, however, highlighted the lack of cooperation by the appellant during inquiries and the ex parte adjudication based on information from VSNL. The Department requested a remand to the Original Authority for factual verification and potential charge of duty under the 'Tour Operator Scheme' if applicable.

3. The Tribunal considered the submissions from both sides and noted the lack of details furnished by the appellant during the initial proceedings. Recognizing the relevance of the evidence now presented by the appellant, the Tribunal deemed it necessary to set aside the lower authorities' orders and remand the matter to the Original Authority for fresh consideration. The Tribunal directed the appellant to submit written evidence within 45 days and instructed the Original Authority to decide promptly within two months, also directing the Department to verify the vehicles used by the appellant with RTO authorities.

4. Ultimately, the appeal was allowed by way of remand, emphasizing the need for a comprehensive review of the factual details and the appellant's submissions. The Tribunal's decision aimed at ensuring a fair assessment of whether the appellant's services fell under the 'Rent-a-cab Scheme Operator' or any other applicable scheme, highlighting the importance of cooperation and detailed verification in such tax matters.

This detailed analysis covers the issues raised in the judgment, providing a comprehensive overview of the legal proceedings and the Tribunal's decision.