TMI Blog2005 (5) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. Therefore, it appointed a contractor for providing that service as and when required, ex-plant/terminal and to the point fixed by the Corporation. Shri Kuldip Singh Gill was one such operator, during the period 1-4-2000 to 28-2-2001. The Corporation paid Shri Kuldip Singh Gill about ₹ 18.7 lakhs for transport operation under the contract. The vehicle used was matador. 2. On 19-3-2001, the Deputy Commissioner, Central Excise, Jalandhar issued a Show-cause Notice contending that the service rendered by Shri Kuldip Singh Gill was Rent-a-cab operator s services which attracted Service Tax at the rate of 5%. Accordingly, a duty demand of over ₹ 93,000/- was raised in the Show-cause Notice, this service tax demand was conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and no liability whatsoever shall be attached to the Corporation on account thereof. 4. The Corporation shall pay to the contractor/s for the operation of the said buses at the rates specified in the rate schedule attached hereto. RATE SCHEDULE Amount MATADOR MINI BUS 1. per school/marketing round trip a. For maximum distance of 12 kms. b. For maximum distance of 24 kms. 2. Flat rate per kilometer 3. Minimum charges for vehicle per day Rs. During the hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced is that, the cabs were not leased out for any interval of time, for use by the Oil Corporation, according to its discretion. That service tax under the heading does not cover all manner of transport or vehicle hire services is clear from the wording of the heading itself. The levy has been defined as any service provided.......by a rent-a-cab scheme operator in relation to renting of a cab . In the present case, there was no renting of cabs. Instead, transport service was provided. In view of this, service tax demand on the appellant is not sustainable. The demand for interest and penalty have also to fail since they are dependent on the tax. The impugned order is set aside and the appeal is allowed with consequential relief. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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