Credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004

Indian Service Tax

Notification

Exemption

[Notification No. 3/99-ST, dt. 28/2/1999]

In exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided to any person by a rent-a-cab scheme operator in relation to renting of cabs, from the whole of the service tax leviable thereon under Section 66 of the said Act.

2. This notification shall have effect upto and inclusive of the 31 st day of March, 2000.

Effective Rate

[Notification No. 9/2004-ST, dt. 9/7/2004]

In exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a rent-a-cab scheme operator in relation to renting of a cab, from so much of the service tax leviable thereon under Section 66 of the said Act, as is in excess of the service tax calculated on a value which is equivalent to forty per cent of the gross amount charged from any person by such operator for providing the said taxable service.

¹[Provided that the said exemption shall not apply in such cases where ­

• Credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004 or

• Such rent-a-cab scheme operator has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003].

Case Law

Constitutional validity upheld - 2001 (134) ELT 618 (Mad.).