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TMI Blog2016 (12) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... n enactment of section 75 of Finance Act, 2011. It was with effect from 1st September 1997 that taxability in section 65(105) was extended to include service '(n) to any person, by a tour operator in relation to a tour' 'Tour' and 'tour operator' are defined in section 65(113) and section 55(115) of Finance Act, 1994 respectively. The facts in this dispute are that three show cause notices for the periods 2001-01 to 2004-2005, 2005-06 and 2006-07 demanding Rs. 1,69,76,430, Rs. 32,94,067 and Rs. 72,79,292 respectively were issued to M/s Benzy Travels for alleged non-payment of tax as provider of 'tour operator service.' The impugned order-in-original no. 05-07/ST-II/WLII/2011 dated 5th August 2011 of Commissioner of Service Tax, Mumbai-II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istry of Finance (Department of Revenue) number G.S.R. 492 (E), dated the 7th July, 2009, issued in exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994, granting exemption from the whole of service tax leviable under-section 66 of that Act to any person by a tour operator having a contract carriage permit for inter-State or intra-State transportation of passengers, excluding tourism, conducted tour, charter or hire service, shall be deemed to have, and deemed always to have, for all purposes, validly come into force on and from the 1st day of April, 2000, at all material times.' 4. The adjudicating Commissioner took note of this retrospective legislation and concurred with the appellant that all colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner did not ascertain the compliance of the various vehicles of the appellant-assessee with the various types of permits issued by the Regional Transport Authority and has, erroneously, placed reliance on certificate furnished by a Chartered Accountant. The discrepancy between the details furnished in the statement of the authorized person of the assessee and in the certificate relied upon in the impugned order has been pointed out in appeal. Failure of the adjudicating Commissioner to impose penalties has also been challenged. 7. We have heard both sides and we observe at the outset that taxability of 'tour operator services' was laden with various complications including the reference to the provisions of Motor Vehicles Act, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carriages' performing the same activity as state-run undertakings was eliminated by a corrigendum circular. Consequently, we find no difficulty in holding that, for the purpose of exclusion from tax, vehicles used by service providers is also to be so construed. The validation Act which refers to the notification cannot be said to have any other intent. We also note that section 75 of Finance Act, 2011 make no reference to the Motor Vehicles Act, 1988 or the distinctive permits issued thereunder. The Validation Act has not made any alterations to section 65(105) (n) of Finance Act, 1994 but has accorded a privilege to a certain class of service providers. The validation is to accord retrospective exemption to the same class of providers to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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