Service Tax
TRT-2025-
Date:-17-08-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 17 August 2023
Parties: Green Logistics Corporation Vs C.C.E. & S.T.-Vadodara-I
Facts –
- The Appellant, Green Logistics Corporation, were paying service tax under ‘rent a cab service’ and ‘Tour operator service’ regularly. They were under bonafide belief that, since hiring the vehicle is different from rent a cab service the same is not liable for service tax.
- It was contented by the appellant that most the hiring of the vehicle to Maharashtra State Road Transport Corporation (MSRTC) is falling under ‘Supply of Tangible Goods Service’. However, since the demand was not made under that head service tax demand is not sustainable.
Issue –
- Whether the appellant is liable to pay Service Tax on the hiring of Buses under ‘Rent a Cab operator Service’?
Order –
- The Tribunal observed that on this issue various cases have been decided and though finally it was held that the hiring of the buses also falls under ‘rent a cab service’ but considering the bonafide of the assessee the demand is set aside on the ground of time barred.
- In the case of Vijay Travels wherein the Hon’ble Gujarat High Court while dealing with the demand for longer period upheld the order of the Tribunal to the extent the demand was set aside on time bar.
- Further, This Tribunal also on the same issue in the case of Pearl Travels dealing with issue of limitation held that “As per our above discussion the demand in respect of rent a cab operator service is sustainable only to the extent it relates to the normal period and demand for the extended period is set aside.”
- In view of the above judgments even though the demand on merit was sustainable, but demand for the extended period was set aside. Considering this legal position is the present case since entire demand is beyond normal period the same is not sustainable. Consequently, the penalties are also not sustainable. Accordingly, the impugned order is set aside and appeal is allowed.
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