Amber Travel Services Vs Commissioner (CESTAT Delhi)
CESTAT Delhi held that service tax is not chargeable on the services provided in respect of tour undertaken for carrying out Hajj pilgrimage in Saudi Arabia by Indian pilgrims considering these as export of service.
Facts- The appellants are engaged in providing the services of tour operators and air ticket agents. They were also providing packaged tour operator services by way of conducting packaged tours for Hajj/ Umrah pilgrims to Mecca-Madina at Saudi Arabia. Based on an intelligence, it was observed that the appellants have not obtained the service tax registrations and have failed to declare their taxable receipts to the service tax Department.
The duty demand was raised alongwith the proposal of recovery of interest and the imposition of penalty. Both the authorities below have confirmed the said proposal. Being aggrieved, the appellants are before us.
Conclusion- Held that service tax is not chargeable on the services provided in respect of tour undertaken for carrying out Hajj pilgrimage in Saudi Arabia by Indian pilgrims considering these as export of service.
Held that the amendment in Mega Notification after coming of negative list also supports the appellants’ case. This entry still exempts the services by the specified organization in respect of a religious pilgrimage has facilitated by Ministry of External Affairs of Government of India. There is no denial to the fact that the Ministry of External Affairs only allots 30% of its Hajj pilgrimage quota to the appellants. Thus, seen from this angle as well, we hold that services in question are exempted from the tax liability.
FULL TEXT OF THE CESTAT DELHI ORDER
Present order disposes of 9 appeals, order in appeal being common to all of them. However, there have been 3 different Order in Originals as follows:-
