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TMI Blog2016 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... to the employee to ultimately purchase the car at the end of his employment and the employee would also be under the obligation to purchase the car at the rate which is a written down value. That by itself, can not be an exception. What is relevant is, as to whether a service is being provided by the applicant to its employees which service is "in the course of" or "in relation to" his employment. There can be no dispute that the service of "making available" a car to the employee is being rendered by the applicant. In this context, both the conditions are fulfilled which are conditions in clause (b) of Section 65B (44). Whether the car given for official use, for personal use or use for both will not be making any difference. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use and in lieu of this, the company was to charge the said employees the same amount which the applicant would be paying to the car leasing company from whom they hire the car. 3. It is an admitted position that the service which is provided by the car leasing company to the applicant is being taxed under the regime of the service tax. There is no dispute over this. The question posed is as to whether the amount which the applicant charges to its employees for this use of the vehicles is subject to service tax. 4. In fact, there would be no necessity to consider this question if the amount is charged by the applicant to the employee is same which the applicant is paying to the car leasing company from whom it has hired the cars. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re can be no dispute that the service of making available a car to the employee is being rendered by the applicant. In this context, both the conditions are fulfilled which are conditions in clause (b) of Section 65B (44). Firstly, it is in the course of the employment because the agreement between the applicant and employee clearly suggests that this will be during the course of his employment only. Second condition is also satisfied that it is only because the employee is in service and in that sense the service becomes in relation to his employment. Since, both these conditions are fulfilled, we have no doubts in our mind that this will not amount to 'service'. 8. Shri Dikshit, the learned representative of the Revenue, howe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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