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TMI Blog2012 (9) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... i Ashok Jindal, Mathew John, JJ. REPRESENTED BY :Shri R.K. Verma, DR, for the Appellant. Shri Ajay Agarwal, Advocate, for the Respondent. [Order per : Mathew John, Member (T)]. The Respondent is in the business of giving Taxi, Mini Buses, Deluxe Buses and Non Deluxe Buses on hire basis. He had a contract with various units of Indian Army for making available such means of transportation against request. The rates were finalised by calling for tenders from different interested parties and on finalisation of the contract, certain rates were agreed to between the Respondent and the Indian Army. As per the impugned order, the vehicles were to be placed on hire as per the following terms :- A. Condition 1(a) - Civil Taxi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent demanding an amount of Rs. 1,33,263/- being Service Tax payable for the period 2005-06 along with appropriate interest. Further, penalties under Section 77 and 78 of the Finance Act, 1994 were also proposed. On Adjudication, the Adjudicating Authority confirmed demand of Rs. 1,33,263/- and imposed penalties on the Respondent under Section 77 and 78 of the Finance Act, 1994. Aggrieved by the order, the Respondent filed an Appeal with the Commissioner (Appeals). The Commissioner (Appeals) relied on the decision of the Tribunal in the case of R.S. Travels v. CCE reported in (2008) 15 STT 437 (New Delhi-CESTAT) = 2008 (12) S.T.R. 27 (Tribunal) and came to the conclusion that the service provided by the respondent does not fall under the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther submits that the service provided by the Respondent is just like the services provided by any taxi-operator on the road who provides services to any person calling for taxi. The only difference is that there is a fairly long term agreement regarding rates. The procedure followed by army requires such agreement on rates. The Respondent is not placing any vehicle at the disposal of the army on any long term duration. So the decision of the Tribunal in the case of R.S. Travels will apply to the facts of the case and the service tax will not be payable on the service provided. 6. We have considered arguments on both sides. Ordinary taxi-operators on the street are not brought under tax net under the entry for Rent-a-Cab scheme. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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