Bus Services for Transporting Employees and School Children Qualify for Service Tax Exemption Under Entry 23(b) of Notification: CESTAT

The CESTAT held that bus services used by Century Pulp & Paper to transport its factory employees and school-going children are exempt from service-tax under Entry 23 (b) of Notification No. 25/2012-ST. The vehicles were treated as contract carriages, not tourism or hire. Since the activity directly served employees and students, it fell under the notification exemption—offering relief to businesses providing employee transport services.:contentReference[oaicite:3]{index=3}