Case Details: Principal Commissioner of Central Excise and CGST, Jaipur vs. Rajasthan State Road Transport Corporation (2026) 43 Centax 233 (S.C.)
Judiciary and Counsel Details
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- Dipankar Datta & Satish Chandra Sharma, JJ.
- S/Shri N. Venkatarman, A.S.G., Gurmeet Singh Makker, AOR, Mrs Nisha Bagchi, Padmesh Mishra, Madhav Sinhal, Karunakar Mahalik, Advs., for the Petitioner.
Facts of the Case
The assessee operated buses under an agreement to promote tourism by transporting passengers between Jaipur and Delhi and Jaipur and Agra. Under the agreement, hotel accommodation and food were provided at specified points, while the assessee collected fare from passengers travelling both intra-State and inter-State, retained the entire fare collected and paid a token amount under the agreement. The department demanded Service Tax by classifying the activity as tour operator service. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the activity was more akin to transportation of passengers than tour operator service. The matter was placed before the Hon’ble Supreme Court.
Supreme Court Held
The Hon’ble Supreme Court held that it found no reason to entertain the civil appeal against the order passed by the CESTAT. The Court, after hearing the parties and considering the material on record, declined to interfere with the impugned order. Accordingly, the civil appeal was dismissed.
