R.S. TRAVELS Vs. CCE

JUDGEMENT

(1.) THE point of dispute in this appeal is as to whether during the period of dispute i.e. from 1.4.2000 to 31.3.2004, the appellants were acting as "Rent -a -Cab" operator, as defined under Section 65(91) of the Finance Act, 1994 and hence attracting service tax under Section 66 read with Section 65(105)(O) of the Finance Act, as contended by the Revenue or their activity was outside the purview of Rent -a -Cab operator scheme, as claimed by the Appellant. According to the Appellant, they were engaged only in giving their cabs on hire to their clients and this activity is not covered by the definition of Rent -a -Cab operator service, as given in Section 65(91) and hence they were not liable to pay any service tax.

(2.) Heard both sides.

(3.) WE have carefully considered the submissions from both the sides. The point of dispute in this case is whether giving cabs on higher on demand basis, for which the charges from the client are made on the basis of per k.m. rate, is covered by the definition of rent -a -cab scheme operator's service, as defined under Section 65(91) of the Finance Act, 1994. The period of dispute is from 01/04/2000 to 31/03/04. According to the Appellant, the very words - 'rent a cab scheme operator' suggest that the owner of the cab temporarily parts with the possession of the vehicle for a consideration and during the period renting, the vehicle is at the disposal of his client and that this scheme would not cover when the service being provided to a client is a pure transport service for which the vehicle is given on demand and the billing is done on the basis of per k.m. rate and at no point of time the vehicle is under the control of the client. The Revenue's contention, relying upon the Tribunal's decision in case of Express Tours and Travels Pvt. Ltd. (supra) is that the Government's intention is to tax the provider of a service which involves hiring and renting of cabs formally for a longer period and that the Appellant's activity would be covered by the definition of rent a cab scheme operator's service.