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2024 (3) TMI 858 - CESTAT NEW DELHIExemption from service tax - rent-a-cab service - State Transport Undertaking - reverse charge mechanism - Extended period of limitation - HELD THAT:- The issue is no more res integra. In BANGALORE METROPOLITAN TRANSPORT CORPORATION VERSUS COMMISSIONER OF SERVICE TAX [2015 (2) TMI 100 - CESTAT BANGALORE] it has been held at the business undertaken by BMTC is to provide bus facility /transport facility to the citizens of Bangalore city and main activity is that running the buses in the city for convenience of the citizens and thus it cannot be called as a rent-a-cab service operation. The definition of cab under section 65 (20) of Finance Act, 1994 of maxicab under section 65 (70) of Finance Act read with Section 2 (22) of Motor Vehicle Act and of rent-a cab scheme operator defined under section 65 (91) along with the meaning of taxable service in relation to renting of cabs given under section 65 (105)(a) of the Finance Act, 1944 have been examined by the Tribunal in BMTC case. The Tribunal has held that definition itself excludes State Transport Undertakings (Bangalore’s BMTC in said case) from the category of service providers. Though in the present case the appellant is alleged to be the recipient of rent-a- cab service and is held liable under reverse charge mechanism (RCM) it is observed that Notification No. 25/2012 dated 20.6.2012 exempts State Transport Undertaking from any tax liability. The decision of Maulana Azad is well applicable to present case - appellant is not liable to service tax for receiving buses and taxis on hire. The appellant cannot be made liable to tax not even under RCM for receiving legal consultancy services. Extended period of limitation - HELD THAT:- There is no evidence found on record proving such intent / mensrea with the appellant to evade payment of service tax. The appellant have already been held not liable to pay the amount confirmed. Resultantly, it is held that the department has wrongly invoked the extended period of limitation while issuing Show Cause Notice. There is no rational in confirming the impugned demand even under reverse charge mechanism - the demand on both the counts is wrongly being confirmed by the adjudicating authority below. Hence the order under challenge (Order-in-Original) is hereby set aside - appeal allowed.
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