Service Tax is not leviable on School buses as they are not categorised under the definition of Cab’

Last updated: 31 August 2023

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The CESTAT, Ahmedabad has ruled that service tax is not applicable on the transportation of school children using buses. The tribunal found that this service is distinct from 'rent-a-cab' services and is specifically excluded from the definition of a 'cab' under the Finance Act, 1994, when used by an educational body. Consequently, the demand for service tax raised by the Revenue Department was set aside.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in Akshar Travels v. C.C.E. & S.T.-Daman [Service Tax Appeal No. 263 of 2012-DB dated August 17, 2023] ruled that, use of motor vehicle for transportation of school children is clearly different from rent-a-cab service, hence no service tax is to be leviable on transportation of children to and from school.

Citation :
Service Tax Appeal No. 263 of 2012-DB dated August 17, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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