TMI Blog2023 (2) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant s own case. As regards the request of the appellant for referring this matter before a Larger Bench in view of the contrary decision of the Mumbai bench of the Tribunal in the case of ARVAL INDIA PRIVATE LIMITED VERSUS PRINCIPAL COMMISSIONER OF SERVICE TAX IV AND (VICE-VERSA) MR CJ MATHEW, MEMBER (TECHNICAL) [ 2020 (9) TMI 125 - CESTAT MUMBAI] , it is noted that the Tribunal has differentiated the decisions based on the facts, as is evident in para 7 of the order. There are no infirmity in the impugned order - appeal dismissed. - MR. DILIP GUPTA, PRESIDENT AND MS. HEMAMBIKA R PRIYA, MEMBER (TECHNICAL) Shri Akashdeep , Advocate for the appellant Shri Harshvardhan, Authorized Representative of the Department ORDER The current appeal has been filed to assail the Order-in- Original No. 03/1/15/16 dated 04.04.2016 wherein the Adjudicating Authority confirmed the demand of Service tax of Rs. 4,08,28,837/- under section 73(1) of Finance Act, 1994 along with interest and penalty. A penalty of Rs. 40,00,000/- under section 76 was imposed. 2. M/s Carzonrent (India) Pvt. Ltd. (hereinafter referred to as 'Appellant') having its registered office situated at 9th Floor, Vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is payable in advance for each calendar month. As per these lease agreements, he submitted that it is clearly evident that by executing the agreement, the appellant had transferred all substantial rights to use the vehicle for consideration payable in cash. Consequently, the said activity would be subject to VAT as per article 366 (29 (A)(d)) of the Constitution of India, section 2(zc) of the DVAT Act, 2004 and other State VAT Acts such as Maharashtra Vehicle Act, 2005, Haryana Vehicle Act 2003 etc. 4. As per the statutory provisions, it is clear that the transfer of right for use of goods is clearly covered under the term deemed sales and the appellant was duly discharging VAT on the consideration received as lease rent recovered from its client under the aforementioned agreements and discharging its VAT liability within stipulated period. He also argued that during the relevant period, the appellant was discharging their VAT liability on the major portion of lease rent at the effective rate of 12.5 % or higher rate as applicable and this rate was higher than that of Service Tax effective rate by 0.3%. 5. The learned counsel for the appellant concluded his argument that in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory provisions for tax liability in terms of Section 65(105)(o) of the Finance Act, 1994 stipulates that the taxable service means any service provided or to be provided to any person by a rent-a-cab scheme operator in relation to the renting of a cab. The various terms of these definitions have further been explained in Section 65 of the Act itself. As pointed out in the impugned order there is no reference to period of renting in the statutory provisions. The liability to tax arises when a rent-a-cab operator provides a vehicle to nother person on rent and receives consideration. The plain reading of the scope of the tax liability is to this effect only. The nature of arrangement may vary from party to party. In CST v. Vijay Travels [2014(36) S.T.R. 513] it was held that when a person carries on continuous activity of renting of a cab, i.e., letting for the use in case of a maxi cab or motor vehicle, such renting of a vehicle would invite taxable service. The Tribunal in Ghanshyam Gupta [2017(11)STT 130] held that when the assessee rented out a vehicle to a hirer, where the vehicle was stationed at the premises of the hirer and was under his exclusive control, the tax liability u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a long period. It was further held that the test for ascertaining whether an activity is covered by the entry rent-a-cab operator service is as to whether it involves giving a cab with or without driver to a client for a certain period of time for some consideration, which can be on per hour or per day or per month basis. 13. Learned Consultant for the appellant referred to certain decided cases mainly involving interpretation of Sales Tax Act. We find the reliance placed on the decision of the Hon ble Andhra Pradesh High Court in G.S. Lamba and Sons [2015 (324) S.T.R. 513 (A.P)] is not relevant to the present facts. The Hon ble High Court was dealing with mixtures for readymix concrete. On examination of the clauses of the agreement, the Hon ble High Court concluded regarding the tax liability on A.P. General Sales Tax Act, 1957. Similarly, the Tribunal in Patronet LNG Ltd.,[2016 (46) S.T.R. 513 (Tri-Del)] was dealing with chartering of tankers for transportation of LNG. The conditions of agreement are apparently different in the said case. Similarly, the Hon ble Delhi High Court in Delhi Airport Advertising Pvt. Ltd. [2016 (44) S.T.R. 399 (Del)]was dealing with revenue earned fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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