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TMI Blog2009 (5) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... hort-paid service tax on commission received from the airlines as incentive. - We find that lion’s share of the impugned demand is attributable to the notional income earnable by the appellant if it had sold cargo space of airlines at the published rate, without discount. We find that the service tax is leviable, prima facie, only on the commission received by the appellants, a commission agent. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above amount and penalty of Rs. 19 lakhs imposed on it under Section 78 of the Finance Act, 1994, After due process of law a Show Cause Notice issued to M/s. Skylift Cargo Pvt. Ltd., an air cargo agent booking domestic and international air cargo for various airlines was found to have received commission and incentive from various airlines for booking cargo on their flights and had not paid se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60,000 (c) Gross margin available to skylift (a-b) 40,000 (d) Offer price to shippers by skylift 80,000 (e) Actual margin earned (d-b) 20,000 (f) Actual income earned (e + commission @5% on b) 23,000 (g) Taxable value adopted in the SCN (c + commission @ 5% on b) 43,000 2. The appellants have conteste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed by various airlines could not be treated as part of the commission subject to service tax, the appellants rely on a decision of the ITAT in the case of Singapore Airlines Ltd. v. ACIT, Circle 51(1), New Delhi in order TDS A. No. 58/Del./03, dated 19th Oct. 2004, wherein the ITAT had decided that the amount realized by the travel agent in excess of the net fare should not be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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