Query on Rent a ceb service, Service Tax

[sumeet tholle]

Dear Sir,

My client who is hotel also arranges vehicles from outside for their customers.

He charge fix rate vehicle wise for Airport/Railway station pickup and drop.

Along with this, he charges vehicle wise at fixed rates to visit Ellora, Ajanta or near by places.

In fact, he has prepared vehicle wise/place wise chart of charges.

Now, department demanding Service Tax under "Rent a Cab service" for Period April 2008 to March 2012 which we have never charged to our customer.

Is this "rent a cab" service.

We are relying on following judgement,

1. Surya Tours and Travels Vs CCE (2009) 19 STT 147 = 2008 (10) TMI 123 - CESTAT, NEW DELHI

2. Sri Sai Krishna Travels Vs CCE (2010) 24 STT 245= 2009 (9) TMI 515 - CESTAT, BANGALORE

Pl. Guide.

Thanks and Regards

Sumeet C. Tholle, CA.

Posts / Replies

[Pradeep Khatri]

Dear Sumeet,

We are afraid that the judgments you are referring have been overruled by the following two High Courts, namely:-

1. Hon'ble Punjab and Haryana High Court.
2. Hon'ble Madras High Court.

Please also check the profile of Rent-a-cab service w.e.f. 2008 that whether there was any change made in this service or not?

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)