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2012 (7) TMI 440 - AT - Service TaxTravel Agent Services - service tax liability - Held that - The assessee claim the gross amount received for the services was less than Rs. Four lakhs and they are eligible for the benefit of Small Scale Service providers as per the Notification No. 6/2005-ST the appellant has not raised this point before/the lower authorities - remand the matter back as the issue needs to be considered by the adjudicating authority in its correct perspective.
Issues:
Service tax liability on the appellant under the category of Travel Agent Services. Analysis: The appeal was against the order related to service tax liability on the appellant for Travel Agent Services. The appellant argued that they were eligible for the benefit of Small Scale Service providers for the financial years 2004-2005 and 2005-2006 as the gross amount received was less than Rs. Four lakhs. The Chartered Accountant contended that the benefit should have been automatically given to them as per Notification No. 6/2005-ST, even though this point was not raised before the lower authorities. On the other hand, the SDR argued that since the appellant did not raise this point before the lower authorities, it should be considered from that perspective. After considering the submissions, the judge found that there was no dispute regarding the services falling under the category of Travel Agent Services. The judge noted that the benefit of the notification should have been automatically granted to the appellant, even without a specific claim. The judge emphasized that the appellant's plea of eligibility for the benefit of Notification No. 6/2005-ST for services up to the first four lakhs during April 2005 to March 2006 should not be disregarded, provided the limit of Rs. Four lakhs was not exceeded in the preceding financial year. Since this issue was not raised before the lower authorities, the judge decided in the interest of justice to remand the matter back to the adjudicating authority for reconsideration after following the principles of natural justice. In conclusion, the appeal was allowed by way of remand for the adjudicating authority to reevaluate the issue of the appellant's eligibility for the benefit of Notification No. 6/2005-ST in the context of service tax liability under the category of Travel Agent Services.
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