9911796707
TMI Blog2017 (9) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... se, wherein this Tribunal has made it clear that these charges are not to be included in the assessable value of the services provided by the appellant Moreover, as per the exemption N/N. 12/2010 dated 12.02.2010, statutory taxes charged by any government on Air passengers would be excluded from the taxable value for the purpose of levy of tax and therefore, the service tax is not payable by the appellant. Passenger Service Fee (PFS) and Airport Tax are not includable in the assessable value of the services provided by them - appeal allowed - decided in favor of appellant. - Appeal No. ST/51515/2014-DB - Final Order No. 61764 /2017 - Dated:- 8-9-2017 - Mr. Ashok Jindal, Member ( Judicial ) And Mr. Devender Singh, Member ( Technical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant is before us. 3. Ld. Counsel for the appellant submits that the issue has already been decided in their favour by this Tribunal in the case of Continental Airlines vs. CST, New Delhi 2015-TIOL-1481-CESTAT-DEL wherein it has been held that PSF and Airport tax cannot be included for the purpose of determining the liability of service tax. Therefore, on this ground, impugned order is to be set-aside. He further submits that in their own case, reported as 2016-VIL-2014-CESTAT-DELHI, these charges are not to be considered for levy of service tax. He further submits that the Tribunal has held that the element of PSF and Airport Tax are not liable to service tax in the light of the decision in the case of Austrian Airlines vs. CST F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Consequently, impugned order is to be set-aside. 5. On the other hand, ld. AR relied upon the decision of the Tribunal in the case of Air Canada vs. CST, New Delhi Final Order No. 52137/2017 dated 01.03.2017 to say that these charges are includable in the assessable value of the service provided by the appellant. 6. Heard both sides and considered the submissions. We find that the short issue involved in the matter is that, whether PSF and Airport charges collected by the appellant are to be included in the service provided by them under the category of Transportation of Passengers by Air services or not. Ld. AR has heavily relied on the decision in the case of Air Canada vs. CST, New Delhi (supra). We find that in the case Air Canad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealing with any expenditure or cost incurred by the appellant in providing any service. Their claim is that these amounts (PSF and Airport taxes) are collected on behalf of the Airport Authority. In the absence of supporting evidence and also the crucial fact that the same is transmitted on actual basis without any mark up/tax element involved, has not been established in the present case. Here, we also note that the Tribunal in Continental Airlines Inc - 2015-TIOL-1481- CESTAT-DEL and a few other cases held that PSF and airport taxes are not includible in the taxable value of airlines. It was recorded that these charges were collected by the airlines on behalf of airports and were paid to them and, therefore, are not includible in the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to pay for security component to any Security Agency designated by the Central Government for providing the security service. We find that the said tax has been collected by the appellant and same has been shown separately on the tickets. Therefore, the appellant has complied with the condition of Rule 6 of Service Tax (Determination of Value) Rules, 2006 and the same are not includable in the assessable value of service provided by the appellant, as the impugned period is, post 27.02.2010 and the said issue has been examined by this Tribunal in the appellant s own case wherein this Tribunal has made it clear that these charges are not to be included in the assessable value of the services provided by the appellant relying on the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
