TMI Blog2017 (9) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... not made any reference to Section 73A - appeal allowed - decided in favor of appellant. - ST/472/2009 - Final Order No. 42127 / 2017 - Dated:- 18-9-2017 - Ms. Sulekha Beevi C.S., Member ( Judicial ) And Shri Madhu Mohan Damodhar, Member ( Technical ) Shri S. Ramachandran, Consultant for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent ORDER Per Bench Facts of the case are that the appellants are engaged in providing various types of vehicles including vehicles having capacity of more than 12 seaters to various customers. The department sought to recover demand of service tax liability from the appellant on the allegation that they are engaged in renting of motor vehicles to various corporate companies. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard both sides and perused the records. 6. The ld. Consultant is correct in his contention that the matter has been settled in the assessee s favour. The Hon ble High Court of Uttarakhand in the case of Sachin Malhotra (supra), relied upon by the consultant has examined the issue in detail. In the landmark judgment, reported in 2015 (37) STR 684, the Hon ble High Court has clearly laid down that in the case of rent a cab scheme, there is a requirement that the hirer should have freedom to use the vehicle as he pleases which undoubtedly implies that he must have possession and control over the vehicle, which is not the case in the services provided by the appellant therein. The relevant portion of the judgment is reproduced below:- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal importance and constitutes the distinguishing feature between rent-a-cab and hiring is that, in the case of hiring , undoubtedly, the owner of the vehicle retains control and possession; he either drives the vehicle himself or employs somebody else to drive the vehicle; and the customer merely makes use of the vehicle by travelling in the vehicle on the basis of a contract that he will pay the requisite hire charges for the period he uses the vehicle. Unlike the same, in the case of rent-a-cab, as is provided in the Motor Vehicles Act, the person is enabled to take the vehicle with him wherever he pleases, subject, no doubt, to the terms of the contract between the parties and he uses the vehicle as his own subject to his paying the ren ..... X X X X Extracts X X X X X X X X Extracts X X X X
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