No Service Tax on PSF, Admin Fee & Airport Taxes: Virgin Atlantic Wins Case

Virgin Atlantic Airways Ltd Vs Commissioner of Central Excise (CESTAT Delhi)

Virgin Atlantic Airways Ltd secured a significant legal victory against the Commissioner of Central Excise in a case challenging service tax demands. The Commissioner confirmed demands totaling Rs. 6,24,75,401/- on Passenger Service Fee (PSF), Admin fee, and Airport Taxes. The case involved three show cause notices covering different periods.

Detailed Analysis:

• Background of the Case: Virgin Atlantic, a registered airline providing international passenger and cargo services, faced service tax demands after an investigation prompted by suspicions of non-payment. The demands primarily focused on PSF, Admin fee, and Airport Taxes.

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