TMI Blog2024 (3) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... ell within the knowledge of the department. Accordingly, the department at this stage cannot claim wilful suppression of fact intending evade payment of service tax on the part of the appellant and raise the demand again by invoking extended period, as held by the Hon'ble Apex Court in the case of NIZAM SUGAR FACTORY VERSUS COLLECTOR OF CENTRAL EXCISE, AP [ 2006 (4) TMI 127 - SUPREME COURT] . Accordingly, the impugned Order is not sustainable on the grounds of limitation. Business Support Service - HELD THAT:- The appellant corporation has acquired the passenger vehicles having road worthiness to meet their requirement for the efficient, adequate and economic passenger transport services, in public interest, The appellant, being a statutory Corporation, has no authority to permit other persons to run their vehicles on their own, on payment of some amount to the Corporation. From the plain reading of the definition of Sec.65(104c) of the Finance Act, 1994, it is observed that the activity of providing parking and receipt of entry fee is not covered under the clauses mentioned under the definition of Business Support Service. Accordingly, the activity undertaken by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Chowdhury, Authorized Representative for the Respondent ORDER Order : [Per Shri K. Anpazhakan] Assam State Transport Corporation, is a statutory corporation, incorporated by Govt. of Assam under the provisions of the Road Transport Corporations Act, 1950, to give effect to adequate, efficient and economic transport facility to the public, as contemplated under the provision of the said Act. 2. In order to achieve its legal obligations and to provide efficient and economic transport facilities to the public in the State of Assam and the neighbouring states in the North East, the Appellant made a scheme of arrangement with private bus owners, and acquired near about 1,200 private owned buses in the state of Assam to ply on the 600 Nationalized Routes on an arrangement that the appellant shall reimburse 90 % of the revenue earned by a particular private owned bus towards their running and maintenance expenses and 10 % shall be shared towards administration expenses of the Appellant. The 10 % amount retained by the appellant is shown as revenue income of the appellant under the accounting head 'Revenue from Private Owned Buses'. 2.1. The Revenue is of the view that the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he stage carriage transport is not covered under the Finance Act, 1994 and no service tax is leviable on stage carriage transport of passengers. The Ld. adjudicating authority has erred holding that the appellant corporation is carrying on Business Support Services to the private transport operators. The appellant Corporation is established by the State Govt. only to provide adequate, efficient and economic road transport service to the public. In view of the prevailing financial condition of the corporation, the appellant was unable to own sufficient number of busses to ply on the 602 nationalized routes and accordingly, the Corporation acquired passenger carrying vehicles from the private owners to ply busses on 602 Nationalized Routes specified by the State Govt. in the public interest. The appellant, being a statutory Corporation, has no authority to permit other persons to run their vehicles on their own, on payment of some amount to the Corporation. Accordingly, the appellant submits that the activity undertaken by them cannot be considered as 'Business Support Services' promoting the business of the private transport operators. . The ld. adjudicating authority has he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been issued to the appellant on the same issue of implementation of Private Owned Buss Scheme, 2001 and a demand has already been raised under the category of 'Business Auxiliary Service' . Thus, the department is well aware of the activities of acquiring buses by the appellant from private operators for carrying passengers. Now, Notice has been again issued for the same activity under various categories of taxable service such as Business Support Service, Renting on immovable properties and providing time space for Advertisement service, by invoking the extended period. We observe that the appellant has been filing returns regularly and the activities of appellant is well within the knowledge of the department. Accordingly, we hold that the department at this stage cannot claim wilful suppression of fact intending evade payment of service tax on the part of the appellant and raise the demand again by invoking extended period, as held by the Hon'ble Apex Court in the case of Nizam Sugar Factory v. Collector of C.Ex, A.P.[2008 (9) S.T.R. 314 (S.C.)]. Accordingly, we hold that the impugned Order is not sustainable on the grounds of limitation. 7. Regarding merits of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reading of the definition of Sec.65(104c) of the Finance Act, 1994 reproduced above, we observe that the activity of providing parking and receipt of entry fee is not covered under the clauses mentioned under the definition of Business Support Service. Accordingly, we hold that that the activity undertaken by the appellant cannot be considered as 'Business Support Services' promoting the business of the private transport operators. Hence, we hold that the demand confirmed in the impugned order under the category of 'Business Support Services' is not sustainable. 8. Regarding the demand of service tax of Rs.48,15,642/-under the category of 'Renting of Immovable Property service', we observe that the appellant has rented out immovable property for a consideration. In their submissions, the appellant contended that they are not a commercial concern. They are a non-profit making statutory body. They have provided the spaces to stall owners at various places for the benefit of the passengers to arrange their necessity during the journey. Whatever, amount collected by them cannot be considered as 'rent' and used the same has been used towards providing am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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