The Customs, Excise & Service Tax Appellate Tribunal New Delhi, Upheld the Service Tax demand against M/s. Hans Travels for Passenger Transport Services.
Facts
The appeal has been filed by M/s. Hans Travels to assail the Order-in-Original passed by the Principal Commissioner, Service Tax, Indore wherein the demand of Rs. 69,61,910/- along with interest and penalty has been confirmed.
The Appellant is engaged in providing daily passenger transport service from one state to another i.e. Interstate or Intrastate Passenger Transport service.
Submissions
Counsel for the Appellant submitted that the allegation in show cause notice was that since the bus permit issued to the Appellant are of Contract Carriage/ Tourist, hence the Appellant is liable to service tax, whereas the Commissioner confirmed the demand on a completely different ground.
Authorised Representative appearing for the department submitted that one of the basic contentions by the appellant in the grounds given in the appeal memorandum is that the impugned Order is beyond the scope of show cause notice.
He submitted that the Tribunal vide its earlier order had categorically upheld the allegation of the department in the show cause notice that impugned service rendered by the appellant using a contract carriage would fall under the category of tour operator service.
Decision
The division bench of Justice Dilip Gupta President and Hemambika R Priya Member (Technical) observed that owing to the retrospective amendment of the notification, the Commissioner had to specifically examine the issue afresh by asking the appellant to establish their eligibility to the benefit of the notification no. 20/2009-Service Tax dated 7th July, 2009 only.
It was further observed that the exemption was available to the service of tour operators for interstate or intrastate transportation of passengers, other than for the purpose of tourism, even for vehicles plying with tourist permit.
The bench noted that no cogent explanation was provided by the appellant to clarify the block booking of tickets for officials of Laxmivilas Bank Ltd during the period under consideration.
The Tribunal held that the appellant has not been able to discharge the onus on him prove his case that they are eligible for exemption under the said notification. Despite clear directions of this Tribunal to the adjudicating authority to determine the eligibility of the appellant for the benefit of the said notification, keeping in view the fact that the vehicles involved were tourist vehicles and not stage carriages, he has failed to produce the relevant documents to support his contention that he did not fall within the exclusion condition of the Notification.
The bench upheld the demand for the normal time period, and set aside the demand for the extended period.
Case title: Hans Travels V/S Commissioner Of Central Excise & Service Tax, Indore (M.P.)
Citation: Service Tax Appeal No. 53128 of 2016
