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TMI Blog2016 (7) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... value has been made essentially on the ground that the appellant did not include the fuel surcharge, PSF and airport taxes in the assessable value and failed to file correct ST-3 returns (meaning that the assessable value shown in the ST-3 returns did not include the PSF and airport taxes and fuel and insurance surcharge). The Show Cause Notice does not even remotely bring out as to how it was a wilful act to evade service tax and the airline was aware that the same were includible in the assessable value. Mere omission to give correct information is not suppression of facts unless it was deliberate and that an incorrect statement cannot always be equated with wilful mis-statement. Thus, the ingredients required for imposing pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding in the cases of Lufthansa German Airlines Vs. CST, New Delhi [2016-TIOL-1086-CESTAT-DEL] and Continental Airlines Inc. Vs. CST, Delhi [2015-TIOL-1481-CESTAT-DEL]. He also submits that there was no wilful mis-statement or suppression of facts as the airline had taken up the issue through airlines association and it was only on 18.09.2012 that the issue of fuel and insurance surcharge was clarified by CBEC and thereafter the service tax relating to thereto was remitted by it. 3. Ld. Departmental Representative on the other hand argued that to the extent that the above charges constitute part of assessable value and therefore service tax is charged thereon. He cited CESTAT judgement in the case of British Airways PLC Vs. CST, New ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Airline Representatives in India C/o AirIndia, Air India Building 13th Floor, Nariman Point Mumbai-400 021 Subject:- Service tax on transport of passengers embarking in India for international journey by air service - Regarding. Please refer to your letter dated September 04, 2007, regarding inclusion of YQ and YR component in taxable value of service provided by aircraft operator to passenger embarking India for international journey [section 65(105)(zzzo) of the finance Act, 1994]. 2. As per section 67 of the finance Act, 1994, value of a taxable service shall be the gross amount charged by the service provider for the service provided and includes any amount received towards the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harge, PSF and airport taxes in the assessable value and failed to file correct ST-3 returns (meaning that the assessable value shown in the ST-3 returns did not include the PSF and airport taxes and fuel and insurance surcharge). The Show Cause Notice does not even remotely bring out as to how it was a wilful act to evade service tax and the airline was aware that the same were includible in the assessable value. As stated earlier, PSF and airport taxes are not held includible in the assessable value by CESTAT and in case of fuel and insurance surcharge, the issue was taken up with CBEC and once CBEC clarified the matter, the appellant, as per its submissions, deposited the service tax on fuel surcharge which indeed is an evidence of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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