9911796707
TMI Blog2012 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... s of rent-a-cab operator as defined under Section 65(91) read with Section 65(105)(o) of Finance Act, 1994 become taxable w.e.f. 16-10-98. In December, 2003, the appellant's activities of rent-a-cab service came to the notice of the department and on inquiry, it was found that though they had obtained Service tax registration on 20-6-2001, they were not paying Service tax and were not filing any return to the department in this regard. It was found that during the period 2000-2001 to 2003-2004, they had received gross amount of Rs. 8,91,80,169/- on which Service tax chargeable was Rs. 55,15,317/-, which had not been paid by them. In this background, a show cause notice dated 6-5-2005 was issued to the appellant for demand of allegedly non-p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of natural justice have been violated, that there was no suppression of any facts on the part of the appellant, and longer limitation period under Section 73(1) has been arbitrarily invoked, that no penalty was imposable on the appellant under Section 75A, 76, 77 and 78 of the Finance Act, 1994, and that in any case, the appellant were eligible for 60% abatement under Notification No. 2/06-S.T. but the same has not been given. He, therefore, pleaded that the impugned order is not correct. 5. Shri Sheo Narayan Singh, ld. Jt. CDR defended the impugned order by reiterating the findings of the Commissioner (Appeals) in it and pleaded that in view of the judgment of the Punjab & Haryana High Court in the case of CCE, Chandigarh v. Kuldeep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . However, we find merit in their plea that the adjudicating authority has confirmed the demand by calculating the Service tax at the applicable rate on the gross amount received by them without considering the exemption under Notification No. 2/06-S.T. (predecessor Notification No. 9/04-S.T.), which subject to conditions as specified in it, provided for exemption in relation to service provided by rent-a-cab scheme operator for renting a cab from levy of Service Tax under Section 66 of Finance Act, 1994, as is in excess of the service tax calculated on the value which is equivalent to 40% of the gross amount charged from any person by such operator for providing such taxable service. If, the appellant satisfy the conditions for this exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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