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TMI Blog2016 (11) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... ours Shri A.K. Goswami, Addl. Commissioner (AR), Shri P. Damle, Asstt. Commissioner (AR), Shri S.R. Nair, Enquiry Officer (AR) and Shri B.K. Iyer, Superintendent (AR) for Revenue. Per: C J Mathew: Five appeals are taken up for disposal in this order. The common issue in these appeals is the applicability of tax as providers of 'rent-a-cab' service under section 65(105)(o) of Finance Act, 1994 from these appellants/respondents who are alleged by tax authorities to be 'rent-a-cab operators' as defined in section 65 (91) of Finance Act, 1994. 'Cab' is defined in section 65(20) of Finance Act, 1994. Two of the operators, M/s V-Link Tours & Travels Pvt Ltd and M/s Travel Link, also operate buses that are used to render services to their clien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority held that these, being contract carriages, came under the purview of 'tour operator' service only after the amendment of 16th May 2008 in section 65 () of Finance Act, 1994 incorporated contract carriages within its scope. Even so, coverage thereafter was also held as untenable as the vehicle owners were not operating tours which is an essential condition of taxability. It was also held that the two had become taxpayers after 1st June 2007 when the definition of 'cab' was amended to allow wider latitude to coverage and had been discharging their tax liability thereafter. It was further held that the agreements to provide cars to clients was not period-specific but distance-specific and, relying upon the decisions of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t vehicles provided on hire to M/s Bharat Sanchar Nigam Ltd (BSNL) did not fall within the scope of taxability as 'rent-a-cab' service. 6. On behalf of Revenue, the decisions of the Hon'ble High Court of Madras in Secy. Fedrn. Of Bus Operators Assn of TN v. Union of India [2001 (134) ELT 618)] and that of the Hon'ble High Court of Punjab & Haryana in Commissioner of Central Excise Chandigarh v. Kuldeep Singh Gill [2010 (18) STR (708)] were cited. We note that the judgment relied upon in re PB Bobde did consider the submissions of Revenue relying on those very judgments before going on to hold that possession and control of the vehicle are the essence of the difference between renting and hiring. In view of the chronological proximity of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel for the appellant may be correct in saying that, in the case of rent-a-cab also, there is hiring in the general sense. As we have already noted, the word 'hire' is used even in the rent-a-cab scheme. But, what is of fundamental importance and constitutes the distinguishing feature between 'rent-a-cab' and 'hiring' is that, in the case of 'hiring', undoubtedly, the owner of the vehicle retains control and possession; he either drives the vehicle himself or employs somebody else to drive the vehicle; and the customer merely makes use of the vehicle by travelling in the vehicle on the basis of a contract that he will pay the requisite hire charges for the period he uses the vehicle. Unlike the same, in the case of rent-a-cab, as is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ryana High Court (supra), which is relied on by the learned counsel for the appellant. We would think that the said court has not considered the aspects, which we would think were absolutely relevant in arriving at a conclusion.' 7. There is, we find, another compelling logic for, by any other interpretation, would render the taximeter cab-driver/operator also liable to tax. That such has been the intent of the legislature appears far-fetched and we hold that vehicles contracted out in return for payment on actual usage is not taxable under section 65 (105) (o) of Finance Act, 1994. Revenue has not appealed the finding that contracting the use of buses does not fall within the ambit of taxation for rendering 'tour operator' service. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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