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2016 (10) TMI 1188 - AT - Service TaxRent-a-cab scheme operator service - business of ‘renting of a cab’ - Revenue says that with the amendment of the definition of ‘cab’ with effect from 01.6.2007 any motor vehicle constructed or adapted to carry more than twelve passengers are also covered under the taxable service of ‘Rent-a-Cab Scheme Operator Services’ and the corresponding taxable service means’any service provided or to be provided to any person, by a ‘rent-a-cab scheme operator’ in relation to the renting of a cab. Wherever these appellants have provided their buses on individual contract basis - Whether such services could be classified as ‘rent-a-cab service’ or not? Held that: - it is to be noted that in the year 2012 on July 01, the concept of negative list was introduced in respect of levy of Service Tax and Section 66D of the Finance Act, 1994 came into force by its insertion in the said Act. An exemption Notification No. 25/2012-S.T. dated 20.6.2012 was issued and further, the Finance Act, 2012 inserted Section 66B in the Finance Act, 1994 which made clear that the service covered under the negative list (given in Section 66D) are not to be taxed. However, we are not considering the impact of these provisions as the period involved in the cases in hand is prior to 01.7.2012, the day when the concept of negative list was introduced. ‘Rent-a-cab scheme operator’ has to be a person who is engaged in the business of renting of cab - From the facts on record, it is clear that essential business of the appellants is plying the buses from one place to the other place(s), which are fixed in advance on regular basis - These appellants only on occasional basis [which one of the appellants say is only three per cent (3%) of their total operation] rent out their buses on specific demands from specific customers - service would not come under the expression 'rent-a-cab scheme operation'. Extended period of limitation - Penalty - Held that: - the issue is highly debatable and arguable and therefore the invocation of extended period can definitely be not sustainable - penalty also set aside. Appeal allowed - decided in favor of appellant.
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