TMI Blog2023 (9) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... taxi operators are the input services to the appellant - From the invoices produced, it is evident that the taxi operators were paying service tax on their services considering themselves liable to pay service tax and the appellant has been taking CENVAT credit of such service tax. To charge service tax again on reverse charge basis from the appellant (the service recipient) would result in double taxation on the same service. Even otherwise, the notification refers to persons not in the same line of business and NOT persons engaged in the same business and the two are distinct. Similar line of business has a much wider connotation and therefore, it includes their tour operator services as well. Since the appellant is in the simila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorised representative for the Revenue and perused the records. 3. The appellant is a Tour Operator and is registered as such with the Service Tax Department and it has been paying service tax on the taxable services which it provided. Its business mainly consists of organising tours for foreign tourists to India. In order to provide this service, the appellant uses the services of taxis and the operators of these taxis paid service tax and recovered it along with their service charges from the appellant. The appellant availed CENVAT credit of the service tax so paid and utilised it in paying service tax on its output service. It is undisputed that the appellant was filing its Service Tax Returns. 4. The appellant s records for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (32 of 1994), and in supersession . , the Central Government hereby notifies the following taxable services and the extent of service tax payable thereon by the person liable to pay service tax for the purposes of the said sub-section, namely : I. The taxable services, (A)(i) .. (v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of those services shall be paid by the service recipient to the extent indicated in the notification. Notification No. 30/2012-ST was issued and as per S. No. 7(a) of the table contained in it, in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business , 100% service tax should be paid by the service recipients and no service tax needs to be paid by the service provider. 6. The Deputy Commissioner of Service Tax issued Show Cause Notice [SCN] dated 27.1.2016 to the appellant proposing to recover the service tax amounting to Rs. 2,76,808/- invoking extended period of limitation under the proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax itself is not sustainable neither is the interest. Penalties also need to be set aside for this reason. 9. Learned authorised representative for the Revenue reiterated the findings of the impugned order and asserted that the impugned order is correct and calls for no interference. 10. We have considered the submissions on both sides and perused the records. 11. There is no dispute that the appellant is provided tour operator services and has been paying service tax on the services and has been filing ST-3 returns. To provide these services, the appellant hires taxis. Thus, the services of the taxi operators are the input services to the appellant. 12. From the invoices produced before us, it is evident that the taxi ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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