MANGALWARDHINI TRAVELS Vs. CCE

JUDGEMENT

(1.) THE appellants have some vehicles for which the Regional Transport Authority has issued National permits for tour operations i.e. Tourist Permits. But due to some financial problem, the Appellants are not using these vehicles for operating tours, but are using these vehicles for transport of passengers from Jabalpur to various places upto Nagpur. One of the vehicles has even been granted permit as "Stage Carriage" as spare bus. According to the Appellants, during 2001 -02 to 2003 -04 period, these vehicles were being used as stage carriages, very often illegally and, therefore, they are not liable to pay any service tax. However according to Revenue, these vehicles have to be treated as "Contract Carriage" and since the Appellants have tourist permits in respect of these vehicles, they were operating tours in tourist vehicles and hence they were liable to pay service tax, and is it on this basis that the Joint Commissioner vide order -in -original dt. 16.3.06 confirmed the service tax demand of Rs. 9,13,642/ - against the Appellant under Section 73 of the Act and besides this, imposed penalties on them under Section 75A, 76, 77 & 78 of the Act. The Commissioner (Appeals) vide the impugned order -in -appeal dt. 19.6.06 upheld the Joint Commissioner's order.

(2.) HEARD both the sides.

(3.) DURING the period of dispute, the definitions of "tour", "tour operator", tourist vehicle" and "taxable service with regard to tour", in the Finance Act, 1994 were as under: