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M/s CST Delhi Versus M/s Chanson Car At Call Pvt Ltd

2018 (1) TMI 215 - CESTAT NEW DELHI

Rent-a-cab service - business of running of “radio taxies” and are providing transport services to both individual and corporate customers - scope of the term 'renting' and 'hiring' - whether the service would be taxable under the head Rent-a-Cab-Scheme Operator’s Service or not? - Held that: - The admitted facts of the case are that the respondent is providing various vehicles for transport of people. In respect of such transport for individual passengers for which consideration was received on .....

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tion irrespective of charges per trip are fixed amount instead of per KM basis. - The Tribunal in APSRTC ADDAPA [2017 (11) TMI 773 - CESTAT HYDERABAD] held that when the contract is to hire a vehicle, there is no renting of cab. - Appeal dismissed - decided against Revenue. - Appeal No. ST/52012/2014 - Final Order No. 50003/2018 - Dated:- 3-1-2018 - S. K. Mohanty, Member ( Judicial ) And B. Ravichandran, Member ( Technical ) For the Appellant : S/Sh Amit Jain, Adv. & Rahul Tangri, CA Fo .....

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facts of the case are that the respondent are engaged in the business of running of radio taxies and are providing transport services to both individual and corporate customers. The Revenue held a view that such transport services provided by the respondent, generally termed as radio taxies , are in two parts, namely, transport services, where the driver of the radio taxies charges the passenger on the spot in car as per the meter reading and second, transport services where instead of taxi driv .....

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service. 2. The original authority, after examining the terms of agreement, entered into by the respondent with some of the corporate clients and interpreting the legal provisions for service tax came to the conclusion that the service rendered by the respondent to the corporate clients cannot fall under the category of rent-a-cab-service in as much as services provided by the respondent are in the nature of hire-on-call-service or hire-on-demand-service like provided by them to individual custo .....

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ds of appeal by the Revenue submitted that the adjudicating authority has erred in dropping the demand by relying on the clarification dated 19.06.2006 with reference to radio taxies. He submitted that the corporate clients requested for commercially registered vehicles for transport of their staff as and when required for a fixed period for which payment was made against the invoice at periodical intervals as per mutually agreed terms. There is a difference between the service provided to indiv .....

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ingh & Others-2013 (6) TMI 585-CESTAT Delhi. 4. In the present case, the respondent retained the control of the vehicle provided along with driver and were looking after the repair and maintenance of the said vehicle. The ld AR also referred to the decision of Hon ble Punjab & Haryana High Court in Sh Kuldeep Singh Gill-2010 (18) STR 708 (P&H). 5. None appeared on behalf of the respondent. In fact, on various earlier occasions also, when the case was listed, no one appeared on behalf .....

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o service to corporate clients. The original authority, after examining the facts of the present case, observed as below: 34. Further, I am of opinion that the nature/category of services is neither depended on the mode and manner of bills raised by the service provider nor on the mode and manner of payment to the noticee by the service recipient. As such, I am of considered view that the contract clause clearly reflect on the facts that the vehicles were given on hire and not on rent in the pre .....

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axi Service has held that where the vehicles remain under the disposal and control of owner of the vehicle the same shall not be treated as a rent-a-cab service. 35. Moreover, the Hon ble Ahmedabad Tribunal (L.B.) recently n case of Shree Gayatri Tourist Bus Service Vs CCE Vadadara [2013 (29) STR 499 (Tri.- Ahmd.)] observed that in case of Rent , owner of the property is depossessed from the possession and same passes on in the hands of person who has taken out the same for usage. In the present .....

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maintenance and running of vehicles, make the vehicle available along with driver and substitute the vehicle in the case of any break down of vehicle. I find that said clause clearly indicate that appellant herein is in possession of vehicles and is only hiring out the vehicles to ONGC for a stipulated period or as per agreement. Whether the hiring out of vehicles is for a day or a month does not mean anything, as the said vehicle is still in the possession of appellant-assessee or his driver du .....

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for outside journey. This clearly shows that in the present case there was only a permanent arrangement of providing transport service without renting the vehicles. When the vehicle was running liability to make the payment by NFL was as per rate schedule agreed. Without running or without any call or demand no service was available to NFL. Such distinctive feature does not permit us to hold that the respondent has rented any Cab to NFL and does not invite liability under the Finance Act, 1994. .....

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