Paul Foskey Vs Commissioner of Service Tax-V (CESTAT Mumbai)
CESTAT Mumbai held that services rendered by Marriott Hotels India Private Limited to their group company [Marriott Hong Kong] qualifies as export of services and accordingly no service tax is leviable. Thus, order quashed and appeal allowed.
Facts- The appellant company M/s Marriott Hotels India Private Limited is an incorporated company established in August, 1993 under the Companies Act, 1956 and is a subsidiary of Marriott Worldwide Corporation, USA; the ultimate parent company being Mariott International Inc., USA. For the Asia Pacific region, their group company M/s Luxury Hotels International of Hong Kong Limited is overviewing the Marriott branded hotels and its sub-regional Marriott entities in turn perform similar function of overseeing the operations for a particular sub-region. The appellants are engaged inter alia, in the business of providing hospitality services, management services to various hotels operating under the Marriott International Chain of hotels including the taxable category of services viz., “Business Support Services (BSS), Management Consultancy service.
Post investigation, the department claimed that the appellants were providing taxable services of ‘Business Auxiliary Service’ (BAS) in terms of Section 65(105)(zzb) of the Finance Act, 1994 during pre-negative list regime and as ‘service’ u/s. 65B(44) of the Act of 1994 during post negative-list regime, and thus had failed to pay appropriate service tax to the government exchequer. Accordingly, show cause notice was issued and the demand was confirmed vide the impugned order. Being aggrieved, the present appeal is filed.
