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2015 (2) TMI 100 - AT - Service TaxRent a cab service - whether the service of providing buses on contract basis by the appellant to various factories and firms on monthly rental basis can be classified as rent a cab service or not - main business of the appellant is transporting of passengers with the city of Bangalore and nearby mofussil areas. - Held that:- Words used are services provided by a rent-a-cab scheme operator. Therefore firstly we have to decide whether BMTC can be considered as a rent-a-cab operator which according to the Finance Act means any person engaged in the business of renting of cabs. Apparently BMTC cannot be considered to be a person engaged in renting of cab service at all. The business undertaken by BMTC is to provide bus facility/transport facility to the citizens of Bangalore city and the main activity is running the buses in the city for the convenience of citizens and not a rent-a-cab scheme operation. We find that the definition itself excludes BMTC from the category of service providers. Appellant did not collect a monthly rent as observed by the Commissioner in his order. The charges are made on the number of kilometers actually run is multiplied by the amount fixed per kilometer. A rent-a-cab scheme a monthly rent is fixed and minimum number of kilometer may also be fixed crossing which the customer may have to pay extra. If the number of kilometers falls below the number and even if it is substantially low, yet the customers would be liable to pay the entire rent. That is not the case here. Moreover as submitted by the learned counsel even in such cases where buses are given on kilometer basis, passengers have to be picked up from various points and dropped destination as in the case of stage carriage. Further, we also find that the show-cause notice was issued in September 2011 and the demand relates to the period substantial portion what was taken is time-barred. - For the same reasons, imposition of penalties under various sections of Finance Act also cannot be sustained. Appellants have made out a strong case and we find that the impugned order cannot be sustained - Decided in favour of assessee.
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