Order date  – 26 July 2022

Facts –      

• The appellant, Gunjan Travels, is engaged in providing taxable services under the category of “Rent a Cab Operator” services as defined under Section 65(105) of the Finance Act, 1994.
• The appellant had submitted the annual Balance Sheet and corresponding records to the Income Tax Department, Ahmedabad for the year 2002-03 and 2003-04. On verification of the Balance Sheet, it was noticed that the appellant had short paid Service Tax amount of Rs. 1,56,908/-.
• A show cause notice was issued to the appellant on 16.10.2007 demanding Service Tax amount of Rs. 1,56,902/- under Section 73(1) of the Finance Act, 1994. The appellant had already paid Service Tax along with the interest amount of Rs. 49,688/- and thereon ordered for recovery of interest u/s 75 of the Act and and imposed penalties under Section 76 and 78 of the Finance Act.
• Aggrieved the appellant preferred the appeal before the Commissioner (Appeals).

 Issue –      

• Whether the service tax demanded on the grounds that the vehicle was used for “Rent a Cab Operator” is maintainable     ?

Order –      

• The authorities observed that the appellant has not submitted any documentary evidence in support of their claim before any lower authority or Tribunal. The Income tax dept. has also not adduced any evidence in support of show cause notice for demand of service tax. 
• The tribunal had provided one opportunity to the appellant to present the case before the adjudicating authority and to submit all the documents.
• Also, it is observed that the adjudicating authority has imposed penalties under Section 76 and 78 simultaneously. It is a settled law that both the penalties simultaneously cannot be imposed.
• Therefore, the impugned order is set aside and the matter is remanded to the adjudicating authority for re-consideration of the case.