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TMI Blog2008 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri N.J. Kumaresh, SDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we come across a demand of service tax and Education Cess totaling to over Rs. 52.00 lakhs (with interest thereon) as also levy of penalties on the appellants, for the period April 2000 to March 2007. This demand is under challenge on numerous grounds. The lower authority demanded the above tax in the category of "Tour Operator's Service." 'Tour operator' was covered by Section 65(52) of the Finance Act, 1994 up to October 2004 and by Section 65(115) for the subsequent period. According to the erstwhile definition, a "tour operator" was a person engaged in the business of operating tour in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Secretary, Federation of Bus-Operators Association of Tamilnadu v. Union of India - 2006 (2) S.T.R. 411 (Mad.) = 2001 (134) E.L.T. 618 (Mad.) and the later decision of the Court in Sri Pandyan Travels v. Commissioner of Central Excise - 2006 (3) S.T.R. 151 (Mad.) = 2004 (163) E.L.T. 409 (Mad.). Learned consultant for the assessee has taken our attention to certain documents available on record, including the registration certificates and permits issued by the motor vehicle authorities. We have not found anything in these documents pertaining to specifications relevant to Rule 128 of the Motor Vehicles Rules. It is the case of the consultant that it was open to the departmental authorities to ascertain these physical specifications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same was not considered in the case of Gandhi Travels. After a reading of the Hon'ble High Court's judgment, we note that the requirement for the purpose of Section 65(52) of the Finance Act, 1994 has been conclusively set out in para 29 of the High Court's judgment and, accordingly, for a vehicle to be classified as a "tourist vehicle" for purposes of Section 65(52) of the Finance Act, it is not necessary that it should satisfy the specifications and confort levels enumerated under Rule 128 of the Central Motor Vehicles Rules. What is required is that the vehicle should be put into operation under a permit granted by the motor vehicle authority under some provision of the Motor Vehicles Rules r/w the relevant provision of the Motor Vehic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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