BEST CALL TAXI Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) DURING the period April, 2002 - September, 2003 the appellants had rendered "Call Taxi" services but did not pay Service Tax. A show -cause notice dated 10.12.2003 issued by the department sought to recover Service Tax from the appellants by treating them as 'tour operators' in terms of Section 65 (96) of the Finance Act, 1994. During the course of adjudication, they paid the tax (Rs. 22,615/ -) along with interest (Rs. 3,919/ -). The adjudicating authority appropriated these payments and imposed penalties of Rs. 22,615/ - and Rs. 3,000/ - on the party under Sections 76 and 77 of the Finance Act. Before the Commissioner (Appeals), the party challenged the penalties and obtained only partial relief. The appellate authority reduced penalty under Section 77 to Rs. 1,000/ -, but did not interfere in the penalty imposed by the lower authority under Section 76.

(2.) IN the present appeal, the appellants have disputed Service Tax liability, apart from challenging the imposition of penalties. After hearing both sides and considering their submissions, I have no reason to entertain the grievance as to Service Tax liability inasmuch as, before the lower appellate authority, they had conceded such liability and only wanted to get the penalties vacated.

(3.) THE definition of "tour operator" vide Section 65 (96) of the Finance Act, 1994 reads thus: