2018 (3) TMI 1001 - AT - Service Tax

Rent-a-cab Scheme Operator Service - non-payment of service tax - Held that - the issue involved in the present appeals already stands decided by the Tribunal. In the case of BMTC vs. CST 2015 (2) TMI 100 - CESTAT BANGALORE , where it was held that Apparently BMTC cannot be considered to be a person engaged in renting of cab service at all. The business undertaken by BMTC is to provide bus facility/transport facility to the citizens of Bangalore city and the main activity is running the buses in the city for the convenience of citizens and not a rent-a-cab scheme operation - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against Order-in-Appeal for service tax liability under 'Rent-a-cab Scheme Operator Service' without registration or payment.

Analysis:
The appeals were filed against Order-in-Appeal No.564/2012 and Order-in-Appeal No.130/2014 for providing buses on hire without Service Tax Registration or payment. The department claimed service tax liability under 'Rent-a-cab scheme' from 16.7.1997. Both lower authorities upheld the demand. Miscellaneous Applications were filed for bunching the appeals, which were allowed for early disposal. The Tribunal heard both sides and noted a previous decision in BMTC vs. CST where the issue was decided in favor of the appellant and upheld by the Supreme Court. Additionally, the appellant's own case for an earlier period was decided in their favor. Relying on precedent, the Tribunal set aside the impugned orders and allowed both appeals.

The judgment delivered by the Appellate Tribunal CESTAT, Bangalore, in the present case involved an appeal against the imposition of service tax liability on the appellant for providing services under the 'Rent-a-cab Scheme Operator Service' without obtaining Service Tax Registration or making service tax payments. The department contended that the activities fell under the 'Rent-a-cab scheme' category from 16.7.1997, leading to demands upheld by lower authorities. The Tribunal considered the appellant's appeal against Order-in-Appeal No.564/2012 and Order-in-Appeal No.130/2014, which were related to the provision of buses on hire on a casual contract basis.

During the proceedings, Miscellaneous Applications were filed by the Revenue for the consolidation of the appeals and expedited disposal, which were granted. The Tribunal, comprising of Mr. S.S Garg, Judicial Member, and Mr. V. Padmanabhan, Technical Member, heard arguments from both sides. After reviewing the case records and considering precedents, the Tribunal found that the issue had already been settled in favor of the appellant in previous cases, including BMTC vs. CST and the appellant's own case for an earlier period. Citing these precedents, the Tribunal set aside the impugned orders and allowed both appeals, providing relief to the appellant in the matter of service tax liability under the 'Rent-a-cab Scheme Operator Service'. The judgment was pronounced and dictated in Open Court on 14/02/2018.