2015 (10) TMI 2098 - AT - Service Tax

Imposition of Service Tax- Services of outbound tours - Revenue appeals against the adjudication order to the extent service tax demand on outbound tours was dropped pursuant to SCN Held That - Immunity to levy service tax on outbound tours is no longer res integra - Revenue has no merits - Decision in the case of Cox & Kings Ltd. 2013 (12) TMI 1024 - CESTAT NEW DELHI followed Appeal accordingly dismissed against the Revenue.

Summary

Issues:
- Appeal against service tax demand on outbound tours
- Interpretation of service tax liability for outbound tours

Analysis:
The judgment pertains to an appeal filed by the Revenue against an adjudication order confirming service tax demand on domestic services provided by the respondent/assessee but dropping the proceedings for outbound tours. The main issue in question was the service tax liability on outbound tours provided by the assessee. The Tribunal observed that the respondent provided both domestic and outbound tours, and while service tax was confirmed on domestic tours, the demand for outbound tours was dropped. The Tribunal referred to the decision in Cox & Kings Ltd. Vs. CST, New Delhi, which established that there is no service tax liability for services provided for outbound tours beyond the territory of India.

Therefore, based on the precedent set by the Cox & Kings Ltd. case, the Tribunal concluded that there is no service tax liability for outbound tours. The Tribunal dismissed the appeal filed by the Revenue, stating that in light of the established law, the appeal had no merits. The judgment highlights the distinction in service tax liability between domestic and outbound tours and clarifies that outbound tours are not subject to service tax as per the prevailing legal interpretation.