2008 (1) TMI 222 - AT - Service Tax

Tour Operators - Assessee contended that as per Not. 39/1997 charges for train fares, darshan tickets of TTD and entry fees of Ramoji Film City are not includible while calculating tax liability - Commissioner has not considered the deductions for food, accommodation and other facilities that have been held as part of Tour Package - appellant is admitting the liability of Rs. 40,000/- we direct the appellants to pre-deposit an amount of Rs. 1,00,000 - balance of Tax is waived

Summary

Issues:
1. Liability to pay Service Tax on various items collected by the appellant.
2. Consideration of deductions for food, accommodation, and other facilities in the Tour Package.
3. Calculation of the amount the appellant is liable to pay.

Analysis:

1. The appellant was required to pre-deposit a specific amount towards Service Tax, with a discrepancy arising over the items for which they were liable. The appellant admitted liability for a certain sum but disputed the inclusion of charges for train fares, darshan tickets of TTD, and entry fees of Ramoji Film City in the Service Tax category. The appellant argued for deductions based on Notification No. 39/1997 ST dated 22-8-97, claiming eligibility for a 60% abatement. The JDR contended that the eligible abatement had been granted, and the remaining amount was still subject to Service Tax. The Tribunal noted the Commissioner had not considered deductions for food, accommodation, and other facilities forming part of the Tour Package, which the appellant asserted were not taxable. The Tribunal directed the appellant to pre-deposit a reduced amount of Rs. 1,00,000 within two months, with a waiver on the balance of Service Tax pending appeal disposal, emphasizing compliance to avoid appeal dismissal.

2. The Tribunal's analysis focused on the consideration of various services provided by the appellant within the Tour Package, specifically examining the eligibility for deductions on items such as food, accommodation, and other facilities. The appellant's argument centered on the exclusion of certain charges like train fares, darshan tickets for TTD, and entry passes to Ramoji Film City from the taxable services they offered. The Tribunal acknowledged the appellant's admission of liability for a specific amount but highlighted the need for a clearer calculation to determine the exact sum owed. By directing the appellant to pre-deposit a reduced amount and clarifying the waiver on the balance of Service Tax subject to compliance, the Tribunal aimed to address the uncertainties in the calculation and ensure a fair resolution pending further proceedings.

3. The Tribunal's decision revolved around resolving the uncertainty regarding the appellant's liability for Service Tax, emphasizing the need for a more precise calculation. Despite the appellant's acknowledgment of liability for Rs. 40,000, discrepancies existed in determining the total amount owed due to the inclusion or exclusion of specific services in the taxable category. The Tribunal's directive for a reduced pre-deposit amount of Rs. 1,00,000 aimed to address this ambiguity and facilitate a clearer understanding of the appellant's financial obligations. By granting a waiver on the balance of Service Tax pending appeal disposal, the Tribunal sought to balance the interests of both parties and ensure a fair and transparent resolution to the dispute.