CCE Vs. SUPER TRAVELS AND PAUL TRAVELS

JUDGEMENT

(1.) THE issue involved in both these appeals is as to whether during the period from June 2002 to March 2005, the Appellants who were providing 47 seater semi -deluxe buses to M/s IOCL Panipat and M/s L&T Limited for conveyance of their staff from Karnal to Panipat Refinery and back, were providing "tour operator's service" within the meaning of this terms, as defined under Section 65(52) of the Finance Act, 1994 and were liable to pay the service tax on this basis. There is no dispute about the fact that the vehicles were being operated as contract carriage but none of the buses being used had been granted "tourist permit" by the State Transport Authority under Rule 82 of the Central Motor Vehicle Rules. The CCE (Appeals) vide the impugned orders has set aside the service tax demand for the period prior to 10/09/04 on the ground that during the period prior to 10/09/04 service tax was chargeable only if a person was operating tours in a tourist vehicle covered by a permit granted under Motor Vehicle Act, 1988 and that since the appellant's vehicle were not registered as "tourist vehicle", they could not be said to have been operating tours in a tourist vehicle. It is orders of the Commissioner (Appeals) which have been challenged by the Revenue in these two appeals.

(2.) HEARD both the sides.