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TMI Blog2013 (6) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... & Mahindra for the transportation of their staff. However, they did not register with the Central Excise department during the period 01/09/2001 to 31/05/2002 nor did they pay any service tax on the consideration received amounting to Rs. 3,55,48,949.92 during the said period. Accordingly, a show cause notice dated 13/10/2003 was issued to the appellant demanding service tax of Rs.17,77,448/- under the provisions of Section 73 of the Finance Act, 1994 by classifying the service under the category of 'Rent-a-Cab service' along with interest thereon. In addition, penalties were also proposed for the contravention of the Service Tax Act and Rules and for suppression. Concealment of the correct value of the service under the provisions of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Mahindra & Mahindra as per the contract. The activity undertaken by them cannot be considered as 'Rent-a-Cab Service' inasmuch s they have not undertaken any renting. They were paid consideration based on the mileage used. In June, 2002 they had filed an application for registering themselves under 'Storage and Warehousing Services' and 'Rent-a-Cab-Services' and the department sought clarifications from them with regard to the registration under 'Rent-a-Cab Services' which was replied to by them in August, 2002. In September, 2002 the department granted registration and sought information regarding date of commencement of the service and also to pay service tax @ 5% with applicable interest and to file relevant returns. In March, 2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese submissions it is contended that the order is not sustainable in law. 4. The learned Dy. Commissioner (AR) appearing for the Revenue, on the other hand, submits that from the terms of the contract entered into by the appellant with M/s. Mahindra & Mahindra Ltd., the same was for supply of cabs of different specifications along with drivers and, therefore, the activity would come squarely under the category of 'Rent-a-Cab Services'. As regards the contention that the appellant has not suppressed any facts, the learned AR submits that information was provided to the department about the activities of the appellant and the consideration received for the same, only in March, 2003 and the show cause notice has been issued in October, 2003, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cabs would be required to pay service tax irrespective of the number of vehicles engaged by him in providing the service. There is no stipulation either in the Act or in the Rules that the person renting the cabs should also own the vehicles. So long as the person rents a cab either owned by him or cabs procured from elsewhere, the liability to pay service tax would arise and, therefore, the activity undertaken by the appellant gets squarely covered under the definition of 'Rent-a-Cab Services'. 5.1 The appellant had placed reliance on a number of decisions, such as Kuldip Singh Gill, R.S. Travels, Sri Sai Krishna Travels, etc. wherein it has been held that transport services undertaken for transport of persons would not come under the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... barred or not, from the records of the case, it is seen that even though the appellant applied for registration in June, 2002, there were number of correspondences exchanged between the department and the appellant, and the information relating to the consideration received by the appellant during the period 01/09/2011 to 31/05/2002 was furnished by the appellant to the department only in March, 2003, even though the department had sought for these details as early as in October, 2002. Inasmuch as the show cause notice has been issued on 13 th October 2003, i.e. within a period of one year from the date of knowledge, it cannot be alleged that the show cause notice is time barred, as has been held by the hon'ble apex Court in the case of Niz ..... X X X X Extracts X X X X X X X X Extracts X X X X
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