SHRINATH TRAVEL AGENCY Vs. CCE

JUDGEMENT

(1.) THESE two appeals have been filed by M/s. Shrinath Travel Agency.

(2.) THE officers of Central Excise searched the premises of M/s. Shrinath Travel Agency on 19.10.2000 and recovered various records pertaining to booking of passengers, tourists. On examination of the records, it was found that dining the period 1.4.2000 to 19.10.2000, they had provided Tour Operator Services amounting to Rs. 32,29,360/ - towards booking of tickets. Service tax of Rs. 1,61,467/ - was payable by them on the said amount. Statement of Shri Satya Najayan Sharma, ticket booking clerk was also recorded on that date in which he stated that they were deducting 5% service tax from the fare received by them from the passengers. On 22.11.2000, statement of Shri Shyam Lal Kabra, Proprietor of the firm was recorded in which he stated that they have 12 buses but they have not charged any service tax from the passengers. Show cause notice was issued to the appellants demanding service tax of Rs. 1,61,467/ - and proposing penalty under Section 76, 77 and 78 of the finance Act, 1994. The case was adjudicable by the Asstt. Commissioner, who confirmed the demand and imposed penalties of Rs. 15,000/ - and Rs. 2,000/ - respectively under Section 76 and 77. On appeal filed before the Commissioner (Appeals), the Commissioner (Appeals) upheld the order of the original authority.

(3.) THE other Appeal No. ST/13/2003 is related to refund of the service tax paid by them during the period from 14.2000 to 31.5.2001. The ground for refund is that they were selling seats in buses operated by other bus operators holding a tourist permit granted under Motor Vehicle Act. They are not covered by the definition of Tour Operator under Section 65 (78) of Chapter V of Finance Act, 1994 and hence not liable to service tax. Show cause notice was issued to them for rejection of the refund claim on the ground that Shri Shyam Lal Kabra, Proprietor of the firm had already admitted in his statement tendered before the Superintendent (Service Tax) that they have 12 buses providing services of tour operators. Therefore, the refund claim filed by them is liable to be rejected.