Pilgrims' Progress - No Service Tax on Ropeway to Maa Mansa Devi!
THE temples of Maa Mansa Devi and Maa Chandi Devi are located on the hills around Hardwar. The abode of Lord Shiva is far away and above at Badrinath. Usha Breco Ltd operates several ropeways from Hardwar to both Mansa Devi and Chandi Devi temples. The boarding points for the two ropeways are located at a distance of about 4kms. The pilgrims visit the temples by using ropeways.
The Service Tax Department believes that this service will come within the meaning of ‘tour' and, accordingly, service tax is payable thereon.
The matter is before the High Court of Uttarakhand in appeal by the Revenue. Though in terms of the definition provided in the appropriate law ‘tour' means ‘journey from one place to another, irrespective of the distance between such places', but in order to levy tax, holding out that the service is tour, it is to be shown that the service has been provided by a tour operator. The question, therefore, was, whether the assessee was a tour operator or not?
The Tribunal held that it was not.
The High Court observed, "the fact remains that the assessee provides transportation facility from one of its establishments to another establishment of the assessee. This facility is not the main business of the assessee, but is an ancillary to its main business of providing ropeway service. By providing the facility of transportation from Mansa Devi to Chandi Devi and vice versa, assessee did not carry out tour operation. It facilitated journey of its clients from one place to the other as is being done by the passenger transporters while carrying out their transportation business."
So, the High Court found no scope for interference with the Tribunal's Order and dismissed the Revenue Appeal.
However, in a similar issue, in the Delhi bench of the CESTAT, there was a difference of opinion and the matter is referred to the Third Member. (2012-TIOL-751-CESTAT-DEL)