TMI Blog2006 (9) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... providing service of rent-a-cab operator, according to Revenue. Since the appellants were not registered under the Service Tax Laws, and no service tax was deposited, show cause notice was issued on the ground that they had evaded payment of service tax amounts mentioned in the notice. According to the Revenue, the assessee had admitted that service tax was payable by them and that they will try to pay the service tax that was due, alongwith interest. According to the assessees, there was a difference in Rent-a-cab scheme and Taxi permit scheme under the Motor Vehicles Act 1988, and that Taxi permit holder cannot work as a rent-a-cab operator without obtaining a license for Rent-a-cab scheme. It was also the case that since they were not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e service and holding license under Rent-a-cab scheme was not required for levying service tax. The appeal against the above decision of Hon ble Madras High Court came to be dismissed by Hon ble Supreme Court as noticed by the lower authorities [2003 (157) E.L.T. A-144). It however, appears that the appeal was dismissed by the Hon ble Supreme Court on the ground of not explaining the delay and not on merits. 4. The learned Counsel appearing for the appellants has argued that the appellants were not running any service as rent-a-cab scheme operators because the scheme contemplates handing over the custody of the cabs which were to be driven either by the hirer himself or his driver. According to him, the appellants were keeping the custod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh no licensing requirement is incorporated in the same for the purpose of Service tax, the concept of rent-a-cab under the scheme is required to be kept in mind. The thrust of the learned Counsel s argument is that, since in rent-a-cab , the key of the cab is to be handed over to the customer, unless vehicle is driven by the customer or his driver, the person providing the cab, cannot be called rent-a-cab operator. This argument is made in the context of the provision of Section 75 of the Motor Vehicles Act, relying upon the expression, to persons who desire to drive by themselves or through drivers . It will, however, be noticed that the provision does not specifically tell that the cab which is not to be driven by the customer, is requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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