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2018 (5) TMI 1134 - AT - Service TaxClassification of services - distinction between renting and hiring - Appellants M/s Buthello Travels and M/s Buthello & Sons provided buses to the various Municipal Transport corporations for operating as Stage Carriage for transportation of Public - whether taxable under Rent A cab Scheme Operator Service or otherwise? - Held that: - in the present case the Appellants were giving buses on hire to the corporations. They were not renting the cabs to the corporation. The control and the possession of the buses remained with the Appellant. Hon’ble High Court of Uttarakhand in case of CCE Vs. Sachin Mehrotra [2014 (10) TMI 816 - UTTARAKHAND HIGH COURT] while differentiating between renting and hiring reached to the conclusion that “unless the control of the vehicle is made over to the hirer and he is given possession for howsoever short a period, which the contract contemplates, to deal with the vehicle, no doubt subject to other terms of the contract, there would be no renting”. In the present case, the control and possession of the vehicle has remained under the control of the Appellant. Apparently the Appellant is required to bear the cost of running the buses so hired, including the salary to be paid to the drivers and they are remunerated on the basis of kilometer run only - the possession and control of the vehicle has remained with the Appellant and hence cannot be termed as renting of cab/ bus. Time Limitation - Held that: - the Appellants were filing Service tax returns showing the services as exempted services. In such case when the services rendered by the Appellant were in the knowledge of the revenue and there is no reason to hold that the Appellant intended to suppress the nature of services, in that case no malafide intention can be attributed to the Appellants - extended period not invokable. Appeal allowed - decided in favor of appellant.
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