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TMI Blog2012 (6) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... g buses to PCMT who undertakes the transport to passengers, on stage carriage basis - For the renting/leasing of buses, the appellant receives a consideration on a per km basis for the distance actually run – Considering the definition of "Rent-a-cab scheme operator" u/s 65(91) the assessee is held liable to be fall under it - Merely because the appellant has also provided a driver in terms of the contract, who drives the vehicle, it does not mean that the contract is not for renting of cabs – appellant to make a pre-deposit of 50% of the service tax adjudged in the instant case within a period of eight weeks from the date of order - against assessee. - Appln. No. ST/Stay/44/11, Appeal No. ST/09/11-Mum; - S/591/2012/WZB/CSTB/C-I - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show-cause notice was issued to the appellant demanding service tax on the services rendered by the appellant to PCMT during the period June 2007 to December 2008 classifying the service rendered under the category of "rent-a-cab service" defined in section 65(91) of the Finance Act, 1994 and demanding service tax amount of Rs.38,37,000/- (Rupees Thirty eight lakhs thirty seven thousand only). The appellant contested the demand. The case was adjudicated by the original authority vide order dated 15.01.2010 wherein the service tax demand was confirmed along with interest thereon and a penalty of equivalent amount was imposed on the appellant under section 78 of the Finance Act, 1994. The appellant preferred an appeal before the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough the agreement entered into between the appellant and PCMT. As per the agreement, the appellant should supply medium buses having 46 sitting capacity of 30 numbers and mini buses having 32 sitting capacity of 20 numbers, and these buses should comply with the specifications prescribed. The tenure of agreement is for a period of 5 years from the date of permission to ply the buses on PCMT permit granted by RTO, Pune. The hired buses will be registered with RTO Pune in the name of PCMT as lessee and will operate as stage carriers within the operational area of PCMT. Each medium bus will operate 6000 km per month and each mini bus will operate 5500 km per month subject to reasonable daily operation. The PCMT shall have the right to colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the activity undertaken by the appellant is nothing but renting or hiring of medium and mini buses to PCMT. Merely because the appellant has also provided a driver in terms of the contract, who drives the vehicle, it does not mean that the contract is not for renting of cabs. Further, the consideration is received as per the agreement as hiring or renting charges on per kilometre basis. Therefore, the activity undertaken by the appellant squarely falls within the definition of 'rent-a-cab service'. 5.4 The appellant has relied on a few decisions of the Tribunal pertaining to 2008-10. But in the later decisions given by this Tribunal, namely, Gopalsingh Chundawat 2012 (25)STR 86 a similar activity undertaken has been held to be 'rent-a-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion? + Whether the services provided by the respondent are covered under the definition of "Rent-a-cab scheme operator" provided under section 65(59) of the Finance Act, 1994? The Hon'ble High Court of Punjab and Haryana held that the service provided by the respondent firm to IOC was a taxable service under the category of 'rent-a-cab service'. While coming to such conclusion, the Hon'ble High Court relied on the judgment of the Hon'ble High Court of Madras in Secy. Federation of Bus Operators Assn. of T.N. vs. UOI reported in 2001(134)ELT 618(Mad) wherein a similar question arose and the Hon'ble High Court held that the activity of renting of buses comes within the purview of 'rent-a-cab service'. These decisions of the Hon'ble High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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