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TMI Blog2014 (12) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the assessees cannot be termed as tour operators. Therefore, the demands of Service Tax against them are not sustainable in law. - Decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007 and 22.10.2008. In all the show cause notices mentioned above, the value of Service relating to Category (b) and (C) are covered. During the course of audit of Electronic Corporation of India Ltd., the Audit party observed that APSRTC is providing buses for transport of their employees and on inquiry APSRTC furnished the details relating to the period from 2007-08 and 2008-09. Basing on the above data, the present show cause notice was also issued invoking extended period inasmuch as the information in respect of providing buses for transportation of staff of various companies was not submitted earlier. 3. Learned counsel submitted that going by the definition of tour operator as it existed during the relevant periods, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stituted the definition of 'Tour Operator' so as to include even any person engaged in the business of operating tours in a Contract Carriages. The definition of 'Tour Operator' with effect from 16.05.2008 reads as under: 'Tour Operator' means any person engaged in the business of planning, scheduling, organizing of arranging tours(which may include arrangements for accommodation, sightseeing or other similar services), by any mode of transport, and incudes any person engaged in the business of operating tours in tourist vehicle or contract carriage by whatever named called, covered by a permit, other than stage carriage permit, granted under the rules made under the Motor Vehicles Act, 1988 or the rules made there under. Explanation: Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the records, we do not find any evidence to show that appellant was engaged in planning, scheduling or organizing or arranging tours when vehicles were hired out for the purpose of marriage, pilgrimage etc. The learned counsel also relied upon the website extracted which indicates the nature of work undertaken by them to submit that they do not organize any such thing. He submits that the services provided by APSRTC include supply of buses on hire basis for different purposes and such buses are made available on the basis of casual contract services and APSRTC obtains temporary contract carriage permissions from transport authorities. 6. As regards the services provided to various companies for transporting company employees, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion of the assessee is that they are a nationalized undertaking and are constituted under the Road Transport Corporation Act, 1950. The contention is that they are not tour operators and are not providing tour services to customers. Therefore, they are not liable to pay the amount of service tax demanded. The contention is that 'Tour Vehicles' has been defined under Section 2(43) of the Motor Vehicles Act and it means a contract carriage constructed or adopted and equipped and maintained in accordance with such specifications as may be prescribed in this behalf. The specifications of the tourist vehicles are provided in Rule 128 of the Central Motor Vehicles Rules, 1989. The contention is that the vehicles which they are operating are ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not by tourist buses. They are not arranging any tour and therefore they cannot be termed as tour operators and hence cannot be subjected to pay Service Tax. 6. The contention of the Additional Commissioner (AR) is that the assessee is providing buses for tours like excursions, site seeing, marriages, election duty etc. which is falling under the definition of 'tour operators' which was in vogue from 1-9-1997 and 10-9-2004 onwards. The contention is that as per the definition 'tour' under Section 65(113) of the Finance Act, 1994 means 'a journey from one place to another irrespective of the distances between such places. 6.1 We have considered the rival submissions. Undisputedly the period involved in this case is from 1-4-2001 to 31-3-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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