MODERN TRAVEL AGENCY Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THIS is a stay petition filed by the appellants against confirmation of service tax demand of Rs. 3,20,597 for the services in the category of rent -a -cab and imposition of penalty of Rs. 6,41,194 under Section 78 of Finance Act, 1994 and interest as appropriate under Section 75 of Finance Act, 1994 and other penalties. The appellants were engaged in providing services of rent -a -cab without obtaining valid service tax registration. At the time of investigation of M/s. Lucky Security & Personal Services, it was found that the appellants were indulging in evasion of service tax for providing taxable services of renting of cab by supplying vehicles on rent, for which a show -cause notice was issued and the demand of service tax was confirmed along with penalties.

(2.) TODAY , when the matter was listed for disposal of stay petition, the appellants preferred to file a written submission in support of their contention. In the written submission, the appellants pleaded for financial hardship as the appellants has to receive huge amounts from Bhavnagar Mahanagar Palika and prayed that the department be directed to recover the said amount in dispute from Bhavnagar Mahanagar Palika. On merits, it was pleaded that the case of the appellants is covered by the decision of Tribunal in the case of Kuldip Singh Gill v. CCE, [2005] 2 STT 34 (New Delhi - CESTAT). He also submitted that Tribunal in case of Ganesh Maniyani v. CCE : [2008] 12 STT 81 (Bang. - CESTAT), wherein unconditional stay was granted on similar facts.