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2014 (3) TMI 605 - CESTAT KOLKATARent a Cab Operator Service - Scope of the term Motor Cab - Renting or Hiring - Penalty u/s 77 & 78 - Held that:- assessee has been supplying vehicles such as Maruti Van/Maruti Suzuki/Alto having seating capacity 4+1 including the driver and Ambassadors having seating capacity 4+1 and 5+1 including the driver to M/s. NEEPCO Ltd., Shillong as stated by the said assessee in his statement on 27.05.2009 and also the documents submitted vide their letter dated 15/06/2009 indicates that all the vehicles supplied by them to NEEPCO Ltd. are vehicles having seating capacity of 4+1 and 5+1. As the said vehicles are constructed or adapted to carry not more than 6 passengers excluding the driver, therefore, they conform to the definition of Motor Cab" as per Section 65 (70) w.e.f. 14.05.2003 of Chapter V of the Finance Act. Definition of Rent a Cab Scheme Operator was amended w.e.f. 16.10.1998 vide Finance (NO2) Act 1998 which reads as "Rent a cab Scheme Operator'" means any person engaged in the business of renting of cabs, thus the requirement of operator being registered under the Rent a Cab Scheme Operator had been dispensed with. Consequently, any person engaged in the business of renting of cabs was required to pay service tax irrespective of number of vehicles engaged by him in providing this service. Lower authorities have not examined the issue whether the activity of the appellant falls under the ambit of "hiring" or as the case may be renting. - appellant's case requires re-examination in light of each of their contracts entered by them and the various service recipients. - matter remanded back.
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