9911796707
TMI Blog2006 (12) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants between 10/2004 to 12/2005 and penalties imposed on it. Service Tax of Rs. 8,94,369/- had been demanded by the joint Commissioner as original authority in his order dated 9-8-2006. He had also imposed an equal amount as penalty under Section 78 on the appellants. A penalty of Rs. 1000 was imposed under Section 77 and penalty @ Rs. 100 per day for the delay in payment of the tax due under Section 76. The order also had demanded interest at the appropriate rate under Section 75 of the Finance Act 1994. In the impugned order the Commissioner (Appeals), Trichy has affirmed the demand of tax and the penalties imposed in the original order. 2. The facts of the case are that M/s. BHEL and the appellants have entered into a contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 80/10/04 S.T. dated 17-9-2004 of the CBEC in its para 20. According to the said clarification, prior to the amendment, the service had covered package tour operators, which involved package tours covering mode of transport other than road. Levy on tour operators engaged in operating tourist vehicles continued even after amendment. The scope of levy was expanded by removing the limitation regarding transportation by tourist vehicles only in the case of package tours. The Ld. Counsel submitted that the appellants were not operating tourist vehicles but employed regular public transport buses for transport of BHEL employees. The above activity did not come within the scope of the levy as amended. 4. Ld. SDR submitted that the tax demanded d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of levy is being extended by removing the limitation regarding transportation by tourist vehicles only. Such tourist operators would be subjected to service tax irrespective of the mode of transport used during such tours. The abatements (Notification No. 39/97-ST) in case of package tour operators (providing transportation and accommodation) would remain at 60%. As per the clarification, the tax till then had not applied to package tours, which involved transport by road alone. The revised definition made the tax applicable as regards package tours organized also with vehicles other than tourist vehicles. A perusal of the definition and clarification does not appear to bring the activity of the appellants under the coverage of tour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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