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2006 (12) TMI 10 - AT - Service TaxTour Operator Service-Service tax- Controvercy regarding classification of activity under tour services -Since no tourist vechile is used for tour so as to attract levy ,demand not sustainable
Issues:
Interpretation of the term "tour" for the purpose of service tax levy. Analysis: The judgment involves a dispute regarding the interpretation of the term "tour" in the context of service tax levy. The Tribunal, in a previous judgment, clarified that the levy for service tax is on service provided 'in relation to tour'. The key question raised was to determine what constitutes a tour in the given scenario. The Tribunal emphasized that the pilgrimage to the temples in question, undertaken from one point to another, constitutes the tour. It was highlighted that the transit between two boarding points is merely incidental to the tour and cannot be considered as a separate tour itself. The Tribunal rejected the idea of defining tour based on distance, stating that the law aims to remove ambiguity and not assign an artificial meaning to the term 'tour'. Furthermore, the Tribunal ruled that in the present case, as the pilgrimage was performed using a ropeway Gondola and not a tourist vehicle, the duty demand made under the impugned order was not sustainable. The judgment emphasized that to attract the levy, there must be a genuine tour, and in this case, the visit to the temples constituted the tour. The road link between the boarding points was considered incidental and did not displace the pilgrimage as the main tour. As a result, the impugned order was set aside, and the appeal was allowed. It was noted that no pre-deposit was required due to the clarification provided in the previous judgment regarding the interpretation of the term "tour" for service tax purposes. In conclusion, the judgment provides a detailed analysis of the term "tour" concerning service tax levy, emphasizing the importance of the actual tour undertaken and clarifying that incidental transit does not constitute a separate tour for tax purposes. The decision was based on the interpretation of the statutory definition of 'tour' and aimed to remove ambiguity surrounding the application of service tax in scenarios involving travel between different points.
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