Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ/Case Laws/2012-13/1237

Whether the pick up and drop facility of employees by bus is liable to service tax?
 
 


Case:-   M/S PEARL TRAVELS VS COMMISSIONER OF CENTRAL EXCISE, DAMAN

Citation: - 2012-TIOL-1195-CESTAT-AHM

 
Brief fact: - The Stay application is filed for the waiver of pre-deposit of Service tax of Rs 16,84,057/- and penalties under various section of Finance Act,1994 which was confirmed by the lower authorities on the ground that the appellant herein is providing Rent-a-Cab Service and Business Support Service to Welspun India Ltd.

Appellant Contention: The Appellant submitted that various decisions of the Tribunal have already taken a view that transportation of employees based upon per kilometer running of the vehicles, which is in control of the appellant, would not be liable for tax under Rent-a-Cab service. It is also his submission that out of the demand for Rent-a-Cab service, they have already deposited approximately an amount of Rs. 1.44 Lakhs. As regards the service tax liability under Business Support Service, he further submitted that as per the agreement/contract entered into with M/s. Welspun India Limited, the appellant is required to maintain the buses, fill the fuel, pay the RTO Taxes and in turn the appellant is reimbursed the amount at the rate of Rs. 16.12 per kilometer for big buses and Rs. 10.94 per kilometer for small buses. As the appellant is managing the buses which are procured by M/s. Welspun India Limited and given to them for running the same for transportation of the employees, therefore it would fall under the category of support service of business and commerce. He further analyzed the definition of Business Support Services and submits that the revenue is trying to put these services under the Category of Infrastructural Support Service, which is not mentioned in the said definition.
 
Respondent Contention:- The  Learned departmental representative  reiterate the finding of the lower authorities.
 
Reasoning of Judgment:  The Tribunal held that the definition of Support Services of Business and Commerce indicates that it means - "services provided in relation to Business or Commerce" and also has an inclusive definition after this sentence. At this juncture, the Tribunal Contended that the transportation of the employees from their residence to factory premises or vice versa, could be in relation to the business of the said M/s. Welspun India Limited of manufacturing activity. The issue in this regard is needs to be gone into detail and in depth, which can be done only at the time of final disposal of appeal. Considering the fact that appellant has already deposited an amount of Rs. 1.44 Lakhs and the issue being debatable, Therefore Tribunal direct the appellant to further deposit an amount of Rs. 2,50,000/- (Rupees two Lakhs fifty thousand only) within eight weeks from today and report compliance on 20.09.2012. Subject to such compliance being reported, the application for waiver of pre-deposit of balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal.
 
 
Decision:- Conditional Stay granted
 
Comments:-  Although it is a stay matter only but this matter is still very disputed. Even after the introduction of negative list, whether this service will fall under service tax? The “contract carriage” and “ stage carriage” is still exempted. Whether this activity will fall under this category? The times to come will decide.
 
 
 
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com