2010 (7) TMI 116 - AT - Service Tax

Tour operator services composite services services are provided within India and out of India - appellant undertakes a tour of holy places like Jordan, Israel and Egypt etc. for which he charged consolidated amount which includes value of Air Ticket, accommodation, food, sightseeing, visa charges etc. Held that - Chartered Accountant s certificate was not produced before the adjudicating authority matter remanded back

Summary

Issues Involved:
Service tax liability under the category of tour operators.

Analysis:

The case involved a stay petition filed for the waiver of pre-deposit of various amounts, including tax, interest, and penalties under different sections. The Tribunal noted that the appeal itself could be disposed of at that stage. After allowing the stay petition for the waiver of pre-deposit, the Tribunal proceeded to take up the appeal for disposal. The issue at hand revolved around the service tax liability concerning tour operators.

During the proceedings, the appellant's counsel argued that the appellant organized tours to holy places and charged a consolidated amount covering various expenses like air tickets, accommodation, food, sightseeing, and visa charges. The counsel contended that as per the clarifications provided by the Board, services rendered within India are subject to taxes. The appellant submitted a Chartered Accountant certificate detailing the expenses incurred and charged to customers. However, the Tribunal observed that this certificate was not presented before the adjudicating authority. Therefore, without expressing any opinion on the case's merits, the Tribunal decided to remand the matter to the Commissioner for a fresh consideration following the principles of natural justice. The appeal was allowed by way of remand, and the stay petition was also disposed of accordingly.

The decision was pronounced and dictated in open court by the Members (Technical) and (Judicial) of the Tribunal, respectively.