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TMI Blog2014 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... paying tax on the same service. To prevent such a situation, this clarification has been issued. There is no dispute and there cannot be any dispute that liability would be on the operator who has rented out the cab to the other operator also, but he need not pay tax if other operator who hired the cab paid the tax. Therefore, lower authorities were right in asking the appellant to submit proof that the other operator who had hired the cab from the appellant has paid service tax. - matter remanded for verification on this issue. Liability of tax when capacity to carry more than 12 persons - the appellant produced the registration numbers of the vehicles which had been rented out, but it was found that the vehicles belonged to other perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch has culminated in confirmation of demand for service tax of ₹ 87,027/- with interest and penalty under various sections of the Finance Act, 1994. 2. The learned C.A. on behalf of the appellant submitted that confirmation of demand for service tax is mainly in respect of two issues. Each issue is taken separately and considered. 3. In the first issue the demand has been confirmed on the ground that the appellant is liable to pay service tax when he has provided cabs to other rent-a-cab service operators. The ld. C.A. submits that the appellant is liable to pay service tax only when service is directly provided by him to the customer and not to another rent-a-cab operator. For this purpose, he relies upon the letter issued by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax, then it would result in a situation where two operators would be paying tax on the same service. To prevent such a situation, this clarification has been issued. There is no dispute and there cannot be any dispute that liability would be on the operator who has rented out the cab to the other operator also, but he need not pay tax if other operator who hired the cab paid the tax. Therefore, lower authorities were right in asking the appellant to submit proof that the other operator who had hired the cab from the appellant has paid service tax. 6. At this stage, ld. C.A. submits that the matter may be remanded to enable him to produce evidence that other operators have paid tax. Since the appellant always felt that it has not his r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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