Fuel surcharge not to be added for determining basic fare as commission paid on air fare only

Kafila Hospitality & Travels Pvt. Ltd. Vs Commissioner of Service Tax (CESTAT Delhi) CESTAT Delhi held that demand of service tax under rule 6(7) of the Service Tax Rules, 1994 by adding the amount of fuel surcharge to the air fare for the purpose of determining the ‘basic fare’ unsustainable as commission was paid on air fare only and not on air fare plus fuel surcharge. Facts- Kafila Hospitality & Travels Pvt. Ltd., an approved International Air Ticketing Association  agent registered with the Service Tax Commissionerate, Delhi under the category of „air travel agent service�...