TMI Blog2009 (2) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... /MAS - 191 of 2009 - Dated:- 17-2-2009 - P. KARTHIKEYAN, TECHNICAL MEMBER S. Renganathan for the Appellant. N.J. Kumaresh for the Respondent. ORDER 1. M/s. Tamil Nadu State Transport Corporation (Kumbakonam) Limited, Trichy (TNSTC), a State Government undertaking, deployed its buses for transport of employees of BHEL, Trichy from various points in Trichy to the factory of BHEL and back under an agreement they had entered into with BHEL. Similar services were rendered to groups of people for tour to various places. The liability of TNSTC to pay service tax for the aforesaid activity during the period 1-4-2000 to 30-9-2004 under the category "tour operator" was adjudicated by the Additional Commissioner vide his Order-in-Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operator, a show-cause notice dated 18-4-2006 was issued proposing to recover service tax from TNSTC as tour operator for transporting employees of BHEL to their factory and back and also for transporting groups of people to desired destinations during the period 1-10-2004 to 31-12-2005. Adjudicating the show-cause notice, the original authority held that an amount of Rs. 8,94,360 was due from TNSTC towards tour operator service rendered during the material period along with applicable interest. A penalty of Rs. 1,000 was imposed under section 77 of the Act. Equal amount of penalty as the service tax demand was imposed under section 78 of the Act and penalty at the rate of Rs. 100 per day for the delay in paying the tax was imposed under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransportation by tourist vehicles only. Such tour operators would also be subject to service tax irrespective of the mode of transport used during such tours. 2. In the appeal filed before the Tribunal it is claimed that the existing levy on tour operators engaged in operating tours in tourist vehicles remained as such; in case of package tour, the scope of levy was extended by removing the limitation regarding transportation by tourist vehicles only. The liability of service providers like the appellants was not altered by the changes introduced with effect from 10-9-2004. TNSTC also relied on the judgment of the Hon'ble High Court of Madras in the case of Secretary, Federation of Bus-Operators Association of Tamil Nadu (supra), in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our operator' service reads as follows :— "20. Extension of tour operator service to package tour operators using different modes of transport.—At present, tour operator service covers package tour operators also. However, under the present definition, such package tours attract service tax only if such tours involve modes of transport other than road (say a combination of air-rail-cab travel). The definition of tour operator has been suitably expanded. While the existing levy on tour operators engaged in operating tours in tourist vehicles remains as such, in case of a package tour (which are planned, scheduled, organized or arranged by tour operators), the scope of the levy is being extended by removing the limitation regarding transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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