2009 (9) TMI 111 - AT - Service Tax

Demand for Service Tax in respect of contract carriages plying between cities in Maharashtra State and cities in other States - Commissioner (Appeals) has set aside the Order-in-Original on the ground that the respondents are not required to have any licence for running buses and their buses do not conform to the definition of Tourist Vehicle in terms of Section 2(43) of the Motor Vehicles Act read with Rule 128 of the Central Motor Vehicles Rules.We find that the Revenue has not been able to make a prima facie case in their favour to grant stay. Accordingly the stay petitions are rejected.

Summary

The Appellate Tribunal CESTAT, Mumbai rejected the stay application by Revenue in a case involving Service Tax demand on contract carriages in Maharashtra State. The Commissioner (Appeals) set aside the demand, stating that the buses did not require a license and did not meet the definition of Tourist Vehicle. The Revenue failed to make a prima facie case for granting stay, so the stay petitions were rejected.