2005 (5) TMI 353

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..... ps to various places - Vehicle continued to be with operator Service undertaken by operator not in nature of "Rent-a-Cab" service - Service tax demand not sustainable
Shri C.N.B. Nair, J. REPRESENTED BY : Shri Sudhir Malhotra, Advocate, for the Appellant. Shri Bipin Verma, DR, for the Respondent. [Order]. - Indian Oil Corporation needed to transport for the employees of the Corporation. Th .....

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..... sioner (Appeals), Central Excise, Jalandhar. The present appeal is directed against that duty demand. 3. The contention of the appellant is that operating of matador services as undertaken by the appellant was not in the nature of "Rent-a-cab" service and no service tax was attracted. The point being made is that what was covered by the contract was the providing of transport services agains .....

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..... n for non-utilisation for the said buses wholly or in part. 3. The Corporation do not guarantee a minimum mileage work for each vehicle per month nor do they guarantee the minimum number of vehicles that will be utilised per month and no liability whatsoever shall be attached to the Corporation on account thereof. 4. The Corporation shall pay to the contractor/s for the operation of the said bus .....

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..... tinction to renting. As against this, the learned DR would contend, again based on dictionary meaning, that there is no difference between 'hire' and 'rent' and both mean the same. 4. The service in question was rendered in terms of the contract between the parties letter dated 30-3-1998 of I.O.C. to Shri Kuldip Singh Gill asks for "lowest rates in enclosed Annexure-A for providing school bu .....

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..... f transport or vehicle hire services is clear from the wording of the heading itself. The levy has been defined as "any service provided.......by a rent-a-cab scheme operator in relation to renting of a cab". In the present case, there was no renting of cabs. Instead, transport service was provided. In view of this, service tax demand on the appellant is not sustainable. The demand for interest an .....

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