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2015 (7) TMI 1428 - AT - Service TaxLevy of Service Tax - Tour Operator services - conducting outbound tours for performing Haj to Mecca and Medina - HELD THAT - Both sides agree that the issue has been covered by the earlier decision of the Tribunal in the case of M/S COX KINGS INDIA LTD., M/S TRAVEL CORPORATION OF INDIA LTD. AND M/S SWAGATAM TOURS PVT. LIMITED VERSUS CST, NEW DELHI 2013 (12) TMI 1024 - CESTAT NEW DELHI which stands followed in the subsequent decision - One such reference can be made to Tribunal s decision in the case of ATLAS TOURS TRAVELS PVT LTD VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI 2015 (2) TMI 476 - CESTAT MUMBAI where it was held that activity of outbound tours abroad is not taxable. Appeal allowed.
Issues involved:
Identification of liability for service tax on outbound tours for performing Haj to Mecca and Medina under the category of 'Tour Operator services'. Detailed Analysis: Issue 1: Liability for service tax on outbound tours The main issue in the appeals was whether the appellant, organizing outbound tours for performing Haj to Mecca and Medina, is liable to pay service tax under the category of 'Tour Operator services'. Both parties agreed that this issue had been previously addressed by the Tribunal in the case of Cox and Kings India Ltd., which set a precedent. The Tribunal's decision in the case of M/s. Atlas Tours & Travels Pt. Ltd. was referenced for further clarity. The Tribunal held that the activity of outbound tours abroad is not taxable under tour operator services, following the precedent set by earlier decisions. The Tribunal cited instances where this ratio had been followed by other benches, such as the Mumbai Bench and the Bangalore Bench. Therefore, based on the established legal position and precedents, the impugned orders were set aside, and all the appeals were allowed in favor of the appellant, granting consequential relief. In conclusion, the judgment by the Appellate Tribunal CESTAT Bangalore clarified the liability for service tax on outbound tours for performing Haj to Mecca and Medina under the category of 'Tour Operator services'. The decision was based on established legal precedents and previous Tribunal rulings, ultimately ruling in favor of the appellant and providing consequential relief.
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