Case Law Details
Central GST Delhi – III Vs Delhi International Airport Ltd (Supreme Court of India)
Supreme Court held that ‘User Development Fee’ collected by Mumbai International Airport Pvt Ltd, Delhi International Airpirt Pvt Ltd and Hyderabad International Airport Pvt Ltd were not subject to Service Tax.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. In all these appeals, orders of the Customs, Excise and Service Tax Appellate Tribunal1 (hereafter “CESTAT”) are impugned by the service tax authorities (hereafter “the revenue”), who argue that user development fee levied and collected by the airport operation, maintenance and development entities (i.e., the Mumbai International Airport Pvt. Ltd., the Delhi International Airport Pvt. Ltd., and the Hyderabad International Airport Pvt. Ltd., (hereafter collectively called “the assessees”) is subjected to service tax levy, under the provisions of the Finance Act, 1994 (hereafter “the Act”).
2. All the assessees had entered into joint venture arrangements/agreements (hereafter “OMDA”) with the Airports Authority of India (hereafter “AAI”, a body corporate created by the Airports Authority of India Act, 1994 [hereafter “AAI Act”]. Under OMDA, the assesses agreed to undertake some activities enjoined upon the AAI, by the AAI Act. The assessees were authorised, by various notifications (dated 27th February 2009) issued by the Central Government under Section 22A of the AAI Act to collect a “development fee” @ Rs. 100/- for every departing domestic passenger and Rs. 600/- for every departing international passenger at the concerned airports for a period of 48 months.
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