TMI Blog2015 (2) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ly BMTC cannot be considered to be a person engaged in renting of cab service at all. The business undertaken by BMTC is to provide bus facility/transport facility to the citizens of Bangalore city and the main activity is running the buses in the city for the convenience of citizens and not a rent-a-cab scheme operation. We find that the definition itself excludes BMTC from the category of service providers. Appellant did not collect a monthly rent as observed by the Commissioner in his order. The charges are made on the number of kilometers actually run is multiplied by the amount fixed per kilometer. A rent-a-cab scheme a monthly rent is fixed and minimum number of kilometer may also be fixed crossing which the customer may have to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the buses are operated under stage carriage permits. This apart, the appellant is also providing buses to factories for transport of their employees and also schools and college for transport of students. Taking a view that such provision of buses to factories, industries etc. for transporting their employees and also for providing buses at the request of individuals for special functions etc. amounts to rendering of rent a cab service, proceedings were initiated which has culminated in demand for service tax of ₹ 4,60,23,320/- for the period from 01/06/2007 to 31/03/2011 with interest and penalties under various sections have also been imposed. 2. The learned counsel on behalf of the appellants submitted that the appellant is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme operator means a person engaged in the business of renting of cabs. He submitted that BMTC cannot be considered to have engaged in the business of renting of cabs. 3. Learned AR submits that the very same issue had come up before the Tribunal in the case of Jai Santoshi Maa Travellers and this Tribunal vide Final Order No.56363-56364/2013 dt. 02/05/2013 had held that the appellant therein was directed to pay service tax on rent a cab service. Further he also submitted that the provision of buses to factories and industries would amount to renting of buses to them and it cannot be considered as a stage carriage operation. 4. The matter was heard quite for some time and we find that the issue involved in this case falls within a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded in relation to renting of cab. The rent-a-cab scheme operator is defined under Section 65(91) of Finance Act, 1994. The definition reads as under:- Rent-a-cab scheme operator means any person engaged in the business of renting of cabs. Accordingly, any person who in the normal course does a business of renting of cabs will be taxable under this section. Section 65(20) of the Finance Act, 1994 defines a cab to mean - (i) a motorcab, or (ii) a maxicab, or (iii) any motor vehicle constructed or adapted to carry more than twelve passengers, excluding the driver, for hire or reward: Provided that the maxicab referred to in sub-clause (ii) or motor vehicle referred to in sub- clause (iii) which is rented for use by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of levy of service tax. In many of the definitions, we find the definition provides that services provided by any person to any person. In such a case, any person who has provided the service would become liable if the service itself comes within the definition of taxable service. In some cases, the word service provided by a commercial concerned is any person is used. In such cases, the provider of service has to be a commercial entity and therefore a charitable trust may not be liable. In this case, the words used are services provided by a rent-a-cab scheme operator. Therefore firstly we have to decide whether BMTC can be considered as a rent-a-cab operator which according to the Finance Act means any person engaged in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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