Case Law Details
Hi Tours Mamallapuram Private Limited Vs Commissioner of Service Tax (CESTAT Chennai)
Introduction: The case of “Hi Tours Mamallapuram Private Limited vs. Commissioner of Service Tax” heard by the Central Excise and Service Tax Appellate Tribunal (CESTAT) Chennai revolves around the liability of the assessee to pay Service Tax on the mark-up or margin earned for booking tickets for domestic travel. This article provides a comprehensive analysis of the case, including the key facts, arguments, CESTAT’s findings, and the ultimate conclusion.
Detailed Analysis:
1. Background of the Case: The appellant, Hi Tours Mamallapuram Private Limited, operates as a tour operator, providing various services to customers, including organizing tours. The issue at hand relates to the Service Tax liability on the mark-up or margin earned by the appellant for booking air tickets for domestic travel.
2. Key Arguments: The appellant had raised separate bills for air ticketing and other services in their tour packages. In the case of inbound tours within India, they had paid Service Tax on services such as accommodation and sightseeing but had excluded the air ticketing charges from the value of tour operator services, claiming it was not subject to Service Tax.
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