2018 (7) TMI 176

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..... ickets for clients staying at the hotel - Commission received from the travel division for booking air tickets on behalf of the service provider - Held that:- The travel division undertakes the booking of air tickets. The travel division raises invoice charging service tax on the basic fare which is forwarded to the travel desk. The bills raised at the travel desk includes the value of inter-divis .....

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..... Brief facts are that the appellants were issued Show Cause Notice proposing to demand service tax under Rent a Cab Services and Air Travel Agency Services On perusal of ST-3 returns, it was noticed in audit that the appellants had not paid service tax on (i) Parking charges which their travel desk had collected from customers who were provided with Rent-a-Cab Services. (ii) Service charges wh .....

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..... the appellant company. The clients who approach the travel desk of the appellant, are provided with ticket booked by the separate division of their company who are registered as an IATA Agent. There is no service provider service receiver relationship between these divisions and both are one and the same entity. The travel desk will raise the bill on the client which includes the cost of air ticke .....

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..... ard both sides. 5. The Ld. Representative of the company has explained that the transaction of booking air tickets at the travel desk of the appellant company does not amount to rendering of air travel agency services. The guest staying in the hotel approaches the travel desk for booking air tickets, which is forwarded to their travel division. The travel division undertakes the booking of air .....

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..... vice, the appellant collects cost of parking charges also. This is in the nature of reimbursable expenses and therefore cannot be subject to levy of service tax, as decided in the case of M/s.Intercontinental Consultants and Technocrats Pvt Ltd, 2018 (supra). Following the same, we hold that the demand cannot sustain and requires to be set aside which we hereby do. 7. In the result, the imp .....

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