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2020 (9) TMI 791 - AT - Service TaxRent-a-cab service - appellant is providing several numbers of vehicles to BSNL etc. on monthly basis against considerations - it was alleged that M/s AHT & T despite providing taxable services to various customers and realizing the values of the said services, did not disclose the same to the department and thereby have deliberately suppressed the material facts with intent to evade payment of service tax - HELD THAT:- It cannot be disputed that both in “renting” and “licensing”, de facto possession of the thing is enjoyed. Difference is well carved out under the law wherein both, de jure possession and control is given, but in “renting”, it is right-in-rem whereas in “licensing”, it is right-in-persona. When rent-a-cab scheme operator gives the car on rent, de facto possession is, of course, there but, it is not acceptable to uphold that wherever de jure control and possession of the vehicle stands transferred in law from the owner to the person on renting/hiring the service that the service tax is leviable and this is, of course, not different than services rendered on a contractual basis, providing transport service for fixed amount of periodical return or fare. This was reiterated by Hon’ble High Court of Allahabad in the case of ANIL KUMAR AGNIHOTRI VERSUS COMMISSIONER, CENTAL EXCISE KANPUR [2018 (1) TMI 171 - ALLAHABAD HIGH COURT] earlier also. The Punjab & Haryana High Court was also considering the question as to whether transport service provided by the respondent-firm to the Indian Oil Corporation was liable to service tax or not. The Court, after considering various provisions as also decision of the High Court of Judicature at Madras in the case of SECY. FEDERATION OF BUS-OPERATORS ASSN. OF TN VERSUS UNION OF INDIA [2001 (4) TMI 7 - MADRAS HIGH COURT], applied all vital observations of Madras High Court mutatis mutandis to the case before the High Court. Accordingly, it held that transport service provided to Indian Oil Corporation was the taxable service and it set aside the decision of the Tribunal by upholding the view canvassed by the Revenue. The appellant providing several numbers of vehicles to BSNL etc. on monthly basis against considerations which otherwise are on yearly basis. Also keeping in view the appellant is admittedly registered as rent-a-cab service provider, we hereby answer the question so framed in affirmative i.e. in favour of revenue. Appeal dismissed.
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