Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2024 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 562 - AT - Service TaxLevy of service tax - deemed sale or rent a cab scheme operator service - activities of appellants in providing motor vehicles under operational lease basis under a Master Lease Agreement - invocation of Extended period of limitation - penalties under Sections 76, 77 and 78 of the Finance Act, 1994 - HELD THAT:- For the period relating to the pre-negative list regime i.e., prior to 01.07.2012, the taxability was determined in terms of coverage of an activity under the service tax net be defining taxable services under Section 65(105) ibid, which enumerated each of the specified services. For the period post-negative list regime, the category of services hitherto defined under the erstwhile regime were merged under a common phrase i.e., ‘service’ as defined under Section 65B(44) ibid, which was brought into effect from 01.07.2012. There are no strong grounds to hold that the activities undertaken by the appellants in terms of Operation Lease agreement/Master Lease Agreement for providing motor vehicles to their customers, is covered under the scope of levy of service tax, inasmuch as such activity is squarely covered under the ‘deemed sale’ as per Article 366 (29A) (d) of the Constitution of India, in terms of the judgement given by the Hon’ble Supreme Court in the case of BHARAT SANCHAR NIGAM LTD. (BSNL) VERSUS UNION OF INDIA [2006 (3) TMI 1 - SUPREME COURT]. Consequently the demands of service tax and imposition of penalties confirmed in the impugned order is not legally sustainable. The adjudged demands confirmed on the appellants in the impugned order dated 04.11.2015 is liable to be set aside - Appeal allowed.
|