Customs, Excise and Gold Tribunal - Ahmedabad
Shree Gayatri Tourist Bus Service vs Commissioner Of Central Excise And ... on 9 November, 2006
Equivalent citations: [2007]8STJ343(CESTAT-AHMEDABAD), 2007[6]S.T.R.124, [2007]8STT146
ORDER M. Veeraiyan, Member (T)
1. Heard both sides on the stay petition.
2. It has been held that the appellant is a provider of "tour operator and rent a cab service" and a sum of Rs. 32,00,391/- relating to the period 1.4.2000 to 31.3.2003 has been demanded from them and penalties including Rs. 32,00,391/-under Section 78 have been imposed by the Original Authority vide order No. 01/VDR II/ST/Offence/06 dated 19.4.2006.
3. The advocate for the appellant submits that they are only a contract carrier and do not fulfill the conditions as a tour operator as the vehicles are not constructed or adapted or maintained in accordance with such specifications as may be prescribed under Section 2(43) of Motor Vehicles Act for the said purpose. He also claimed that they also do not come under the "rent a cab service" because they are not renting out cabs but only giving on hire on kilo-meter basis. They also felt that they are covered by the decision of the Hon'ble High Court of Madras in the case of Secy. Federation of Bus Operators Association of Tamil Nadu v. Union of India
4. Ld. SDR submits that the findings of the Commissioner that they are rendering services as tour operator and rent a cob services is on sound footing and he also drew our attention to the findings of the Commissioner that the appellants have also collected the service tax.
5. After carefully considering the rival submissions, we hold mat prima-facie, they are liable to service tax as provider of tour operator and rent a cab Service and they are also recovering the service tax from the customers. They have not made out a strong prima-facie case for total waiver of the duty demanded. Accordingly, we order that the appellant shall deposit a sum of Rs. 15 lakhs within eight weeks. This will be in addition to deposit already made by them. On such deposit being made, balance amount of duty and penalty shall stand dispensed with and recovery there of stayed pending the appeals. Failure to comply with this direction shall result in vacation of stay and dismissal of appeals without prior notice.
4. Compliance is to be reported on 12.1.2007.