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2017 (7) TMI 64 - AT - Service TaxAbatement - rent-a-cab service - Held that: - When the scheme of taxation is looked into, the taxing entry seeks to levy service tax on the service provider in relation to renting of a cab - It is an admitted fact on record that assessee rented its vehicle to the users thereof for transportation of their employees from one place to another as stated by the ld. Adjudicating authority in para 13 & 14 of the order. There was a consideration followed for such renting of motor vehicle by the appellant. The vehicles rented were under control and possession of the users thereof for their exclusive use under a contract. Whether driver was provided to the user by the license holder of the vehicle is immaterial. No other user other than the recipient of service was allowed to use the vehicle so rented during tenure of the contract. Incidence of the levy having arisen in the present case in relation to renting of motor vehicle services provided by the assessee, levy of service tax is confirmed. However, quantum of levy may undergo amendment subject to consideration of abetment if permissible which is left to the ld. Adjudicating authority for examination in the light of the law, considering the argument of the assessee and also subject to production of evidence if any. Time limitation - Held that: - the appellant has collected the taxes but not having paid the same to the treasury, it loses all its right to further argue when its conduct of evasion was patent - However, considering that there was a confusion between the assessee and Revenue due to varied judgment of different High Courts, the levy of penalty is considerable under the section 80 of the Finance Act 1944. Appeal allowed by way of remand.
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