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TMI Blog2018 (2) TMI 1565X X X X Extracts X X X X X X X X Extracts X X X X ..... re the Hon’ble Delhi High Court in the case of Delhi International Airport P. Ltd. & Mumbai International Airport P. Ltd. Versus Union Of India & Ors. [2017 (2) TMI 775 - DELHI HIGH COURT], where it was observed that OMDA does not constitute a franchise in terms of Section 65 (47) of the Finance Act and the transaction between the petitioners and AAI does not constitute a taxable service in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er allied issues. 3. Under a policy decision of the Government of India to privatize the Airports for their better management, the AAI issued request for proposals offering a long term Operations, Management and Development Agreement (OMDA for short) to suitably qualified, experienced and resourced parties to design, construct, operate, maintain, upgrade, modernize, finance, manage and develop th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 38.7% of the revenue collected. It is the submission of the appellant that sharing was based on gross revenue and not on profit basis. On the gross revenue, service tax was already paid. But the department opined that it is "franchise agreement" between the parties, so the service tax is leviable. Hence, the Service Tax was demanded by the department along with the penalty. Being aggrieved, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax and the liability if any would be that of the AAI and are also not examining that the said issue is a contractual dispute and should be relegated to arbitration in terms of OMDA. The said issues are left open." 8. Finally, the Hon'ble High Court observed that OMDA does not constitute a franchise in terms of Section 65 (47) of the Finance Act and the transaction between the petitioners and AAI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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