Transportation service which is an ancillary to main business activity would not be classified as "Tour Operator's Service

"

CCE, Meerut – I vs. Usha Breco Ltd. (2014 (33) STR 619 (Uttarakhand)

Facts:

The appellant was operating two ropeways at Haridwar at two different places. The appellant was charging fees from pilgrims for theuse of the said ropeways. The distance between these two ropeways was about 3.75 kms. For those interested in using the ropeways at both places, the appellant provided transportation from one

ropeway to the other by road against consideration of separate fees. The department demanded Service Tax on these fees charges for transporting pilgrims from one place of ropeway to another under "Tour Operator Service." The appellant contended that the said service was not exigible to tax under Tour Operator Service and the appellant was not a tour operator. The Tribunal held that the appellant could not be regarded as tour operator as the transportation was not a main business of the appellant.

Held:

Since there was no change in the facts and these were considered by the Tribunal, the High Court declined to interfere and dismissed the appeal filed by the department.

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