DARSHAN TOURS Vs. COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD

JUDGEMENT

(1.) THE appellant is engaged in providing Rent -a -Cab services. On the ground that appellant did not pay service tax in respect of few transactions during the years 2004 -05 and 2005 -06, proceedings were initiated which has culminated in confirmation of demand for service tax of Rs. 87,027/ - with interest and penalty under various sections of the Finance Act, 1994.

(2.) THE learned C.A. on behalf of the appellant submitted that confirmation of demand for service tax is mainly in respect of two issues. Each issue is taken separately and considered.

(3.) IN the first issue the demand has been confirmed on the ground that the appellant is liable to pay service tax when he has provided cabs to other rent -a -cab service operators. The ld. C.A. submits that the appellant is liable to pay service tax only when service is directly provided by him to the customer and not to another rent -a -cab operator. For this purpose, he relies upon the letter issued by the Assistant Commissioner, Service Tax Head Quarters, Office of the Commissioner of Service Tax, vide F. No. STC/04 -06/CIF/TECH/2010 dated 2 -8 -2010. According to him, in this letter it has been clarified that rent -a -cab operator need not pay tax when the cab is hired by another rent -a -cab operator from him. He submits that the lower authorities have taken the view that it was the duty of the assessee to show that the rent -a -cab operators to whom he had given cabs have paid service tax, which is not correct.