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TMI Blog2007 (4) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered with the Central Excise department. They collected an amount of ₹ 500/- from each outgoing international passenger. As the above said amount was not included for payment of Service Tax. Revenue proceeded against them demanding Service tax amounting to ₹ 57,50,000/- and Education Cess of ₹ 1,15,000/-. Interest under Section 75 of the Finance Act was demanded. Penalty was also proposed. In all, there were three Show Cause Notices covering different periods. The Adjudicating Authority held that the amount collected as 'Users Fee' at the rate of ₹ 500/- per outgoing international passengers would form part of the assessable value for the purpose of payment of Service Tax on the 'Airport Services'. He held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. In fact, a similar fee was being collected at Calicut Airport. That collection in Calicut Airport was challenged in the Kerala High Court and the Kerala High Court held that the collection of such a fee is unauthorized. In the case before the Kerala High Court, the amount was collected on behalf of the Malabar International Airports Development Society. In the present case the fee is collected by the appellant but this will not make the said decision of the Kerala High Court inapplicable to the present case. The High Court has held that the Airport Authority alone can charge fee for various services. Moreover, the services rendered by the airport authority are actually services rendered to airliners. Therefore, such a levy can be made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding facilities, parking facilities, x-ray baggage inspection facilities, etc. these services topassengers are separately rendered by the respective airlines who discharge the service tax liability independently. Services such as air traffic services including flight information service, alerting services, air traffic advisory services, safety services, etc., are rendered to the airlines by the Airport Authority of India. Thus, we find that the collection of the 'users fee' from outgoing international passengers had no relation whatsoever to any services rendered by the appellants. We were further informed that consequent to the Kerala High Court's decision, the appellants stopped collection of the 'users fee' from the outgoing internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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