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2014 (8) TMI 24 - AT - Service TaxRent-a-Cab services - proof that cab is hired by another rent-a-cab operator from him and another operator has paid service tax - Non mention of registration number of the vehicle which was rented out - Whether the appellant is liable to pay service tax on vehicles which had the capacity to carry more than 12 persons under rent-a-cab service - Held that:- the liability to service tax would arise when a cab is rented out to another operator and bill is raised. However, if the other rent-a-cab operator is also registered and pays the tax, then it would result in a situation where two operators would be paying tax on the same service. To prevent such a situation, this clarification has been issued. There is no dispute and there cannot be any dispute that liability would be on the operator who has rented out the cab to the other operator also, but he need not pay tax if other operator who hired the cab paid the tax. Therefore, lower authorities were right in asking the appellant to submit proof that the other operator who had hired the cab from the appellant has paid service tax. - matter remanded for verification on this issue. Liability of tax when capacity to carry more than 12 persons - the appellant produced the registration numbers of the vehicles which had been rented out, but it was found that the vehicles belonged to other persons and not of the appellant except one vehicle which was in the name of the appellant and not in the name of the firm. The question that arises is whether the registration number of the vehicle was required to be given in this case and because of such failure, the liability can be fastened on the appellant. - Held that:- A.R. could not show any circular or statutory provisions making it obligatory for an assessee to indicate the registration number of the vehicle rented out, when he provided rent-a-cab services. In the absence of such provision, in my opinion, indicating capacity of the vehicle rented out on the invoice would be sufficient evidence to show whether the services was liable to tax under the Rent-a-Cab category or not. In such a situation, it was for the department to show that the vehicle actually rented was covered by rent-a-cab service. Therefore, demand of tax cannot be sustained and accordingly the impugned order confirming demand of service tax and penalty relating on such transactions is set aside - Decided in favour of assessee.
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