G.S.R. (E).- In exercise of the powers conferred by section 93 of the Finance Act.1994(3,1994). the Central Government being satisfied that it is necessary in the public interest so to do, he exempts taxable service provided by a rent-a-cab scheme operator in relation to renting of a cab, for much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the service calculated on a value which is equivalent to forty percent of the gross amount charged from any person such operator for providing the said taxable service.

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

(i) credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004; or