9911796707
TMI Blog2007 (9) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... x amount of Rs 1,72,46,602/- and another sum of Rs. 3,44,930/- apart from a penalty of like sum and penalty of Rs. 100/- every day during the period of default. 2. Shri R. Krishna lyer, the learned Chartered Accountant, appeared for the appellants and Smt. Sudha Koka, the learned SDR, for the Revenue. 3. We heard both sides. The appellant is the absolute owner of M/s. Cochin International Airport Ltd. (CIAL in short). Air India has undertaken ground handling services at the airport including transportation of cargo from ramp to the cargo complex. The appellant has also carried out some services. Air India collects and remits Service tax on the gross turnover. 15% of the gross turnover from all Airlines is given to the appellant. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SDR stated that the Adjudicating Authority has considered all the facts and come to the conclusion that the appellants are liable to discharge Service tax liability on the amounts collected from Air India and also the licence fee collected from various parties. She said that in para 24 of the impugned order, the Agreements entered into between the appellant and various parties had been discussed and all the agreements related to the licence granted by the appellant to such parties for performing the functions allotted to each of them. The income received was described as licence fee and not as rentals and, therefore, such income was found to be qualified as taxable income in view of the Circular F. No. 80/10/2004-S.T., dated 17-9-2004. She ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 17-9-2004, the Commissioner has held that the Royalty received from Air India is liable for Service tax. He was not satisfied with the contention of the appellant that Service tax had already been discharged by Air India on the amount received by the appellant from them. While holding that the royalty is liable to Service tax, the Commissioner has not stated the nature of the service rendered by the appellant in return for royalty from Air India. Thus, the findings lack clarity. According to him, there is also no evidence produced by the appellant to the effect that Air India had already discharged Service tax on the royalty amount paid to the appellant. 3.4 The third point urged by the appellant before the Commissioner was that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rried out. Similarly, he had analysed all the other agreements and come to the conclusion that they would not be covered under the category of rents. On the other hand the learned Consultant argued that these licence fee collected are nothing but rentals and, therefore, would not be liable to Service tax. 3.5 On going through the impugned order, we are of the opinion that the entire issue of Service tax liability on royalty and licence fee is debatable. The Agreements entered between the appellant and the various parties have to be thoroughly scrutinized before coming to a proper conclusion. If one goes simply by Ministry's Circular, then, one would conclude that both royalty and licence fee would come under the Service tax net. But suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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