COMMISSIONER OF CENTRAL EXCISE, VADODARA Vs. GHANSYAM TRAVELS

JUDGEMENT

(1.) THE issue involved in this appeal is whether the 10 buses operated as contract carriage by the respondents are to be charged service tax as a tour operator or not. The Commissioner (Appeals) has relied upon the decision of the Honble High Court of Madras in case of Secretary, Federation of Bus Operators Association of Tamil Nadu v. UOI reported in 2006 (2) S.T.R. 411 (Mad.) = 2001 (134) E.L.T. 618 (Mad.) and strangely the same judgment has been relied up by the Revenue to submit that the respondents are liable to pay service tax.

(2.) NO one has appeared on behalf of the respondents. The ld. JDR reiterates the points mentioned in the appeal filed by the Revenue.

(3.) WE have considered the points put forth by the Revenue in their appeal. After examining various statutory provisions of Finance Act, 1944 and Motor Vehicles Act, 1988 and Rules framed thereunder, Revenue has submitted that tour operator means any person engaged in the business of operating tour in a tourist vehicle covered by a permit granted under Motor Vehicles Act, 1988 or the rules made there under and in this case respondent M/s. Ghanshyam Travels are providing services of tour operator in their tourist vehicle which are covered by a permit viz. contract carriage permit granted under Motor Vehicle Act, 1988 and this fact was also confirmed by certificate dt. 5 -9 -2003 of Regional Transport Authority also reveals that buses used by the Ghanshyam Travels are registered as contract carriage under Motor Vehicle Act, 1988 that they had obtained contract carriage under Motor Vehicle Act, 1988.