Case Law Details
Air France Vs Commissioner of Service Tax (CESTAT Delhi)
CESTAT Delhi held that the collection of excess baggage charges would be leviable to service tax under the category of transport of passengers by air and not under transportation of cargo by air.
Facts- The appellant is a foreign airline operating in India as a branch office approved by the Reserve Bank of India. The appellant provides services under the category of “transport of passengers by air” made taxable u/s. 65(105)(zzzo) of the Finance Act,1994 w.e.f. 01.05.2006 and services of “transport of goods by aircraft” made taxable u/s. 65(105)(zzn) of the Finance Act, apart from other services.
In the process of rendering the service, the appellant also collects excess baggage charges when the weight of the baggage of the passenger is in excess of the permissible weight. The dispute that arises in the present appeal is with respect to the levy of service tax on such excess baggage charges collected by the appellant from the passengers.
Conclusion- Held that the collection of amount by the appellant towards excess baggage charges would be leviable to service tax under the category of transport of passengers by air and not under transportation of cargo by air.
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