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2018 (2) TMI 237 - AT - Service TaxRent-a-cab operator service - activity of providing buses on hire/rent on casual contract basis - case of the department is that this activity of the appellant was allegedly covered by the definition of taxable service, namely, Rent-a-Cab Operator Service as defined under Section 65(105)(o) of Finance Act, 1994 - Held that: - it is observed that the appellant M/s MSRTC is not handing over the buses on long time running agreement whereas the ownership of buses is retained by the appellant and they are providing the buses on KM basis for a particular destination as per the choice of the passengers. There is no person involved as a recipient of a Rent-a-Cab service to whom the buses is handed over under a rent agreement. Therefore, in this fact arrangement of providing the buses for a particular journey on KM basis does not fall under the category of Rent-a-Cab Operator Service. The issue is squarely covered by the decision in the case of Shree Gayatri Tourist Bus Service Vs. Commissioner of Central Excise, Vadodara [2012 (5) TMI 126 - CESTAT, AHMEDABAD [LB]], where it was held that the services rendered by the assessee cannot fall under the category of Rent-a-Cab services, as per the definition enshrined in Section 65(91) of the Finance Act, 1994. Appeal allowed - decided in favor of appellant.
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