Renting
of motor cab liable to service tax u/s 65(105)(o) r/w Section 66 of Finance
Act, irrespective of whether operator retains possession and control of vehicle
or passes it on to the customer; Rejects assessee’s stand that since control of
cabs does not pass to customer, its business would not be covered under the
term “Rent-a-cab scheme operator” chargeable to service tax; HC observes, a
plain and simple reading of relevant provisions indicate that what is sought to
be taxed under the Act is service provided by a person under a rent-a-cab
scheme, whereby no distinction is made between ‘renting’ and ‘hiring’; Absent
definition of said terms under Finance Act, meaning acceptable in common
parlance must be assigned, states HC while observing that distinction carved
out between 'renting' and 'hiring' of cab by Uttarakhand HC in case of Sachin
Malhotra in view of Section 75 of Motor Vehicle Act, 1989 is not necessary for
determining taxability of service; Further elucidates, “rent-a-cab scheme”
formulated by Central Govt. providing for obtaining of license by scheme
operator has nothing to do with the provisions relating to imposition /
chargeability of service tax : Allahabad HC
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