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2013 (11) TMI 610 - AT - Service TaxStay application - Demand in respect of commission from the company providing computer reservation system - appellants contended that CRS is being used by them for their own conducting business and cannot be held to be a service to others Held that - Travel Agents are promoting the business of CCRS who is providing service to the Airlines and the payment received by the Travel Agent from CRRS is in consideration for such service - service provided by CRRS is to the Airlines and the Air Travel agent is promoting the service provided to Airlines - Prima facie case not in favour of assessee - Stay granted partially.
Issues: Application for waiver of pre-deposit of tax, tax demanded on commissions received from software company, differing decisions in previous cases regarding pre-deposit amount.
In this judgment by the Appellate Tribunal CESTAT CHENNAI, the applicant filed an application seeking waiver of pre-deposit of tax amounting to Rs.4,54,459/- along with interest and penalty. The applicants, registered under Air Travel Agents Service, were taxed on commissions received from computer reservation systems (CRS) software companies, namely M/s. Abacus and M/s. Amadues, for booking air tickets for customers. The Ld. Advocate cited a case where unconditional stay was granted by the Delhi Bench on a similar issue. On the contrary, the Ld. DR mentioned a case where pre-deposit of 25% of the tax amount was directed by this Bench. The Tribunal noted that in the case of Jose Travels, there was a difference of opinion between the members, but due to the meager amount involved, stay was granted without referring it to the third member. Considering the decision of the Tribunal of this Bench in Milesworth Travel and Tours Pvt. Ltd. Vs. CST, Chennai, the Tribunal directed the applicant to deposit Rs. 1,00,000.00 within six weeks. Upon compliance with this deposit, the pre-deposit of the balance tax along with interest and penalty was waived, and the recovery thereof stayed during the pendency of the appeal. The compliance was to be reported on 19.08.2013. The order was dictated and pronounced in the open Court by Shri. P.K. Das.
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