Case Law Details
Asveen Air Travels (P) Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The issue that arises for consideration is whether the incentive received by the appellant for using the CRS Developer is subject to service tax or not. The Larger Bench in the case of Kafila Hospitality and Travels Pvt. Ltd. (supra) has held that the said incentive is not subject to levy of service tax.
Following the said decision, we are of the considered opinion that the demand cannot sustain and requires to be set aside, which we hereby do. In the result, the impugned order is set aside.
FULL TEXT OF THE CESTAT CHENNAI ORDER
The appellant is engaged in providing service under the category of ‘Air Travel Agency Service’ and are paying service tax on the commission received from the airlines. During the course of investigation conducted by the Service Tax Department, it was found that the appellant had received incentives / commission from CRS Developers (Centralized Reservation System) namely M/s. Galileo India Pvt. Ltd., M/s. Abacus Distribution System (India) Pvt. Ltd., M/s. Amadeus India Pvt. Ltd. for booking of tickets through the computerized reservation booking system offered by the said companies. The department was of the view that the said incentive received is subject to service tax under the category of ‘business auxiliary service’. Show Cause Notice was issued proposing to demand service tax for the period from November 2003 to March 2008 along with interest and also for imposing penalty. After due process of law, the original authority confirmed the demand, interest and imposed penalties. On appeal, the Commissioner (Appeals) upheld the same. Hence this appeal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
