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2017 (6) TMI 720 - AT - Service TaxRent-a-cab operator service - providing vehicles to the clients on hire basis - whether the service rendered by appellant is to be classified as rent-a-cab service - Held that: - similar issue decided in the case of Sachin Malholtra [2014 (10) TMI 816 - UTTARAKHAND HIGH COURT], where it was held that in the case of a rent-a-cab scheme, as is clear from the very fundamental principle underlying the scheme, it is to give the hirer the freedom to use the vehicle as he pleases, which, undoubtedly, implies that he must have possession and control over the vehicle. This is the fundamental distinction between rent-a-cab and a pure case of hiring - the appellants liability for service tax under rent a cab service cannot be contested. The claim of the appellant for abatement available as per N/N. 1 of 2006 dated 01.03.2006 as well as the exemption for threshold turnover limit applicable for small scale service provider during the relevant financial years have not been considered for a decision by the lower authorities - the matter has to go back to the original authority for reconsideration. Appeal allowed by way of remand.
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