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2014 (3) TMI 946 - CESTAT NEW DELHIDemand of service tax - Rent a cab service - Held that:- Though the service tax on rent-a-cab has been introduced since 16.07.1997 and the period of dispute in this case is 2002-2003, it is seen that the contract of the BSNL with the respondent is silent about service tax and as such, it is not in dispute that BSNL were not paying service tax to the respondent along with the vehicle hire charges. Moreover, during the period of dispute, there was confusion on the point as to whether service tax under the Heading Rent-a-Cab Scheme Operators Service under Section 65(105)(o) read with Section 65(91) and 65(20) & 65 (71) would be attracted when vehicles are supplied along with drivers and the charges are on the basis of distance travelled by the vehicle, as the Tribunal in the case of Kuldeep Singh Gill reported in [2005 (5) TMI 353 - CESTAT, NEW DELHI] has held that in such a case, when the vehicle supplier is paid on the basis of distance as per rate sheet, service tax under rent-a-cab operator’s service would not attracted. When there was lack of clarity about the scope of the rent-a-cab operator’s service covered by Section 65(105)(o) and the respondent in this case is an individual who in terms of his contract with BSNL was supplying vehicles and charging for the same on kilometer basis and when the respondent’s contract with BSNL did not mention any service tax, and this is not case a case where the Appellant as service provider while collecting the service tax from the BSNL did not pay the same to the Government, it cannot be said that the respondent was aware of the service tax liability and had deliberately evaded the payment of tax. Therefore, we do not find any infirmity in the impugned order waiving the penalty on the respondent under Section 80 of the Finance Act, 1994 - Decided against Revenue.
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