2012 (7) TMI 163 - AT - Service Tax

Waiver of pre-deposit - Demand of Service Tax - Service Tax was not paid in respect of rent-a-cab services provided by the appellant Held that - appellant has not been able to show that the vehicles were of more than 12 passenger capacity and they had failed to indicate the Registration No. of the vehicle in the bill. On enquiry from the Bench, the ld.Chartered Accouantant produced 2 invoices and both the invoices were found not containing a word Kilometer at all anywhere in the invoices. Application for waiver dismissed.

Summary

Issues:
Service Tax liability for rent-a-cab services provided by the appellant from July 2004 to March 2006, waiver of pre-deposit and stay of recovery of dues, grounds for non-payment of Service Tax including vehicle capacity, kilometer basis service, and services provided on behalf of another travel agent.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved a case where Service Tax amounting to Rs.87,027 was demanded from the appellant for rent-a-cab services provided between July 2004 and March 2006. The appellant sought waiver of pre-deposit and stay of recovery of dues, presenting three grounds for non-payment of Service Tax. Firstly, they claimed that the vehicles provided had a capacity of more than 12 passengers. However, during the hearing, it was revealed that the appellant failed to prove the vehicle capacity and registration details, leading the Commissioner to conclude that the vehicles were indeed rent-a-cabs.

Regarding the second ground, the appellant argued that the services were provided on a kilometer basis, hence exempt from Service Tax based on precedent decisions of the Tribunal. However, upon examination of the invoices produced by the appellant, it was noted that the word 'Kilometer' was not mentioned anywhere, weakening this argument. Additionally, the third ground put forth by the appellant was that the services were provided on behalf of another travel agent who had paid the Service Tax. Nevertheless, the appellant could not provide any evidence to support this claim, further weakening their case.

Consequently, the Tribunal found that the appellant failed to establish a prima facie case and did not provide any evidence of financial difficulty. As a result, the Tribunal directed the appellant to deposit the Service Tax amount within four weeks and report compliance by a specified date. The judgment emphasized the importance of providing concrete evidence and meeting legal obligations in tax matters, highlighting the need for thorough documentation and adherence to tax regulations to avoid penalties and liabilities.