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2023 (5) TMI 604 - AT - Service TaxNon-payment of Service Tax - Rent-a-cab services - Failure on the part of appellant to provide necessary documents - period from 2002-03 to 2004-05 - SCN dated 22.10.2007 was issued for demanding service tax for the period from 2002-03 to 2004-05 - HELD THAT - In this case, no investigation was conducted at the end of the appellant. Only on the basis of information furnished by the Public Vehicles Department, Kolkata and information collected from yellow pages, web sites etc. and scrutiny of income tax records of the appellants, the demands have been raised, which is not sustainable in law as held by this Tribunal in the case of M/S LUIT DEVELOPERS PRIVATE LIMITED VERSUS COMMISSIONER OF CGST CENTRAL EXCISE, DIBRUGARH 2022 (3) TMI 50 - CESTAT KOLKATA . Therefore, the demand against the appellant is not sustainable. Moreover, the appellant has produced the salary bills of the drivers and a Certificate from the Chartered Accountant to this effect certifying that the appellant is engaged in plying metered taxies not rent a cab and the appellant was operating the same through drivers himself. In that circumstances also, the demands are not sustainable. There are no merit in the impugned order and the same is set aside - appeal allowed.
Issues Involved:
The appeal against the impugned order demanding service tax under "Rent-a-Cab" services. Summary: Issue 1: Alleged Failure to Pay Service Tax The appellant was accused of not paying service tax under the category of "Rent-a-Cab" services for the period from 2002-03 to 2004-05. The demand was based on information from various sources and scrutiny of income tax records, leading to the issuance of a show-cause notice. Issue 2: Appellant's Defense The appellant contended that they were not engaged in Rent-a-Cab services as they provided transportation services themselves, with drivers who were their employees. They presented salary bills of the drivers and a certificate from a Chartered Accountant to support their claim. The appellant argued that the demand was unjustified as it relied on third-party records without investigating the appellant's operations. Issue 3: Revenue's Position The Authorized Representative for the Revenue supported the impugned order, stating that the appellant failed to provide the necessary documents to refute the demand for service tax. Judgment: The Tribunal noted that no investigation was conducted at the appellant's end, and the demands were solely based on information from external sources. Citing precedent, the Tribunal held that such demands were not sustainable in law. Additionally, the appellant's presentation of salary bills and a certificate from a Chartered Accountant supported their claim that they were not engaged in Rent-a-Cab services. Consequently, the Tribunal found no merit in the impugned order and set it aside, allowing the appeal with any consequential relief. *(Operative part of the order was pronounced in the open court)*
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