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2013 (10) TMI 188 - AT - Service TaxService Tax Liability - Rent-a-Cab Service Waiver of Pre-deposit - appellant contended that they were under a bona fide belief that such services were not liable to be taxed in their hands, as they were procuring cabs and supplying them to BBMP and bear all the expenses involved on such cabs - Assessee contended that the entire demand was hit by limitation as there was a bona fide belief Held that - The issue needs consideration in depth, as there were various case laws holding a view that such services were taxable Keeping in mind that there was a claim of entire demand being hit by limitation, which was an arguable point, the appellant should be put to some condition for hearing and disposing the appeal stay granted partly.
Issues:
1. Service tax liability on the appellant under the category of 'rent-a-cab' service for the period October 2002 to March 2006. 2. Whether the entire demand is hit by limitation due to a bona fide belief of the appellant. Analysis: 1. The issue in this case pertains to the service tax liability on the appellant for providing 'rent-a-cab' services between October 2002 and March 2006. The appellant claims that they believed in good faith that such services were not subject to taxation as they procured cabs and supplied them to a specific entity, bearing all associated expenses. The tribunal notes the absence of concrete evidence to support this belief beyond the statement of the appellant's counsel. Given the existence of case laws supporting the taxable nature of such services, the tribunal deems it necessary to delve deeper into the matter. 2. The appellant argues that the entire demand should be considered time-barred due to their genuine belief regarding the tax liability. The tribunal acknowledges the arguable nature of this point and decides to allow the appellant an opportunity to present their case by imposing a condition. The appellant is directed to deposit a specified amount within a set timeframe and report compliance accordingly. Upon compliance, the tribunal grants the application for waiver of pre-deposit of the remaining amounts and stays the recovery process until the appeal is resolved. This decision aims to facilitate a fair hearing while ensuring that the appellant meets certain obligations to proceed with the appeal process effectively.
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