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TMI Blog2017 (11) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... /special permit garage - Viewed in this light, the busses of the appellants having become contract carriage or a special permit garage even if for temporary permit to provide them on hire for marriages/pilgrimage etc. this cannot be considered as a stage carriage for that short period and hence cannot then claim to be recovered under the negative list of services by a stage carriage or for that matter covered by the exemptions, provided under section No. 23 of notification 25/2012 since that exemption will not cover contract carriage on hire - demand with interest sustained. Penalties - Held that: - the matter is one of the unproductive and that the question of taxability on the services was mired in confusion and litigation, the penalti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its and private entities for transporting their employees from their work place to specific destinations and vice versa on payment of hire charges. Appellants also operated tours by providing busses to marriage parties, pilgrimages etc. It appeared to the department that these services provided by appellant fall within the ambit of Tour Operator service as defined under section 65(115) of Finance Act, 1994 attracting service tax liability. Show cause notice dated 23.07.2012 was issued to appellants, inter-alia proposing demand of differential tax liability on tour operator services provided by them during the period April 2009 to March 2012 alongwith interest liability thereon as also imposition of penalty under various provisions of Law. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e demand of ₹ 1,11,82,785/- for the year 2012-13 and ₹ 3,63,55,242/- for the services provided during the year 2013-14, alongwith interest liability thereon. Penalty of ₹ 4,75,38,027/- was also imposed under section 78 of the Act alongwith penalty of ₹ 10,000/- under section 77 ibid. Hence, appeal No.ST/30347/2017. 4. In appeal No.ST/30616/2017, Revenue is aggrieved by the HYD-SVTAX-000-COM-146-16-17, dated 16.12.2016, wherein the adjudicating authority has extended benefit of abatement from the taxable value. Since this issue is interconnected with the appeals of assessee, this appeal is also taken up for disposal. 5. On 08.09.2017, when the matter came up for hearing, on behalf of the appellants, Ld. Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Prakash and Sh. B. Raja Ambedkarsubmits that from 1.7.2012, the negative list regimen is vogue, hence the submissions of learned counsel are to be rejected. 7. We find that for the period from 01.07.2012, all services unless specifically mentioned in the negative list or otherwise, specifically exempted are liable to discharge service tax. 8. Ld. Advocate for the appellants was at pains to covey that as per Section 66 (D) (o), containing the negative list, also covers service of transportation of passengers , with or without accompanied belongings by, inter-alia, (i) stage carriage. Ld. Advocate has also placed reliance on notification No. 25/2012-ST, dt. 20.06.2012 (reproduced in para 3 (e) (supra), exempting tax liability in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t garage even if for temporary permit to provide them on hire for marriages/pilgrimage etc. this cannot be considered as a stage carriage for that short period and hence cannot then claim to be recovered under the negative list of services by a stage carriage or for that matter covered by the exemptions, provided under section No.23 of notification 25/2012 since that exemption will not cover contract carriage on hire. In the event, the demand of service tax in all these appeals for the period from 01.07.2012 onwards is stated by law and the impugned orders are sustained to that extent along with demand of interest liability thereon. In consequence, the appeals will also not succeed to the extent of tax liability demanded from 1.7.2012 onwar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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