CITY TRAVELS Vs. COMMISSIONER OF CENTRAL EXCISE, COIMBATORE

JUDGEMENT

(1.) THIS appeal is arising out of Order -in -Appeals dated 30 -9 -2005. The brief facts of the case are that the appellants are engaged in the business of operating transportation of passengers between point to point under contract carriage permit. The Department issued show cause notice demanding Service Tax under Tour operators service and confirmed the demand of Rs. 12,60,129/ - for the period 1 -4 -2002 to 31 -3 -2004 and imposed equal penalty. The same was upheld by the Commissioner (Appeals).

(2.) The above exemption had been given with retrospective effect from 1 -4 -2000. On perusal of records I find that the appellants had operated contract carriage for carrying passengers from point to point as is evident from the photocopies of tickets issued by the appellant to the individual passengers which shows the destination from Coimbatore to Chennai, Coimbatore to Ernakulam and Coimbatore to Pondicherry etc. Therefore, by virtue of exemption given by the Govt. with retrospective effect from 1 -4 -2000, the service provided by the appellant as a tour operator having a contract carriage permit for inter -State or intra -State transportation of passengers are exempted from Service Tax. Accordingly, the impugned order is set aside and the appeal is allowed.