9911796707
TMI Blog2019 (9) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... n, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour. According to the Department, if even one service mentioned at Sl. No. 2(n)(i) is not provided, the service provider will not be entitled to the abatement contemplated under Sl. No. 2(n)(i) - It is not possible to accept the submission of the Department. Entry at Sl. No. 2(n)(i) does not require the service provider to provide each and every service mentioned in the Explanation. The meaning assigned to package tour in the Explanation is when transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour. There is no reason why if some of the service(s) are not provided, the abatement as contemplated under Sl. No. 2(n)(i) should not be available to the service provider. The service has to be provided by a tour operator in relation to a package tour. It would also be pertinent to refer to the decision of the Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd so that the Respondent was eligible to avail an abatement of 60% only. 3. Consequently, a show cause notice dated 19 March, 2013 was issued to the Respondent regarding non-payment of Service Tax amounting to ₹ 22,62,511/- and also proposing a penalty under sections 76 and 78 of the Act for contravening the provisions of sections 67 and 68 of the Act and Rule 6 of the Service Tax Rules, 1994. The Respondent filed a reply to the show cause notice on 22 April, 2013. The Additional Commissioner, by order dated 24 March, 2013 held that the services provided by the Respondent would be covered by entry 2(n)(iii) of the Notification and hence the abatement available to the Respondent would be 60% of the gross receipt charged and not 75%. The order, therefore, confirmed the demand of ₹ 22,62,511/- and ordered it to be recovered under section 73(2) of the Act along with interest under section 75 and penalty under sections 76 and 78 of the Act. 4. The Respondent filed an Appeal before the Commissioner (Appeals) submitting that the services provided by the Appellants were covered at Sl. No. 2(n)(i) of the Notification since it depended on a tour operator providing services 'in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hul Lakhwani, learned Counsel for the Respondent, however, submitted that from a plain reading of the entry at Sl. No. 2(n)(i) of the Notification, it would be clear that there is no requirement that a service provider must provide all the services contemplated therein and even if some of the services contemplated are provided, the service provider would be entitled to the abatement as contemplated under entry at Sl. No. 2(n)(i) of the Notification. He, therefore, submitted that the Commissioner (Appeals) committed no illegality in not sustaining that part of the demand. In support of his submission, learned Counsel placed reliance upon the two decisions of the Supreme Court in Doypack Systems Pvt. Ltd. vs Union of India & Ors. [1988 (36) ELT 201 (SC)] and Renusagar Power Co. Ltd. vs General Electric Company & Anr. [(1984) 4 SCC 671] and a decision of the Allahabad High Court in Touraids (I) Travel Services vs Commissioner of Central Excise [2014 (35) STR 234 (Alld)]. 8. We have considered the submissions advanced by the learned Authorized Representative of the Department and the learned Counsel for the Respondent. 9. In order to appreciate the submissions, it would be appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g or booking accommodation for any person and does not include the cost of such accommodation. 10 (iii) Services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relation to a tour. The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour. 40" 10. The case of the Department is that the Respondent is providing service contemplated under Rule 2(n)(iii) of the Notification, while the case of the Respondent is that it is providing service as contemplated under entry at Sl. No. 2(n)(i) of the Notification. 11. Entry at Sl. No. 2(n)(i) relates to services provided or to be provided to any person by a tour operator in relation to a package tour. The Explanation to the entry defines the expression "package tour" to mean a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour. The Respondent provides some of the services defined in the expression "package tour". According to the Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided as part of the package tour to the person undertaking the tour, the same qualify as package tour. In this case, the appellants are engaged in providing the part of the services to main tour operation in relation to the package tour. Thus, any service provided in relation to the package tour is eligible for exemption under Sr. No. 2(n)(i) of the said notification. Further, on going through the Sr. No. 2(n)(ii) the same is related if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour. In this case the services in respect of booking accommodation is only covered. Under Sr. No. 2(n)(iii) services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relation to a tour is covered. In other words, the services which are not covered under Sr. No. (i) is covered under Sr. No. (iii). In other words, other than the services such as transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are covered. In broader way it can be said that the services which are not similar to the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 where it is stated that the term "relate"' is also defined as meaning to bring into association or connection with. It has been clearly mentioned that "relating to" has been held to be equivalent to or synonymous with as to "concerning with" and "pertaining to". The expression "pertaining to" is an expression of expansion and not of contraction." 15. The same view was reiterated by the Supreme Court in Renusagar Power Co. Ltd. 16. The Allahabad High Court in Touraids (I) Travel Services followed the aforesaid decisions of the Supreme Court and observed that : "28. The phrase 'in relation to' the tour means "in the aid of tour also. Therefore, if any service is rendered in relation to or in the aid of tour is liable to be taxed. The taxable service is therefore not only means mere providing of car, taxies, contract carriages on a temporary basis but it would also include other facilities supplied in relation to tour as a whole." 17. Thus, for all the reasons stated above, the services provided by the Respondent would fall under entry at Sl. No. 2(n)(i) of the Notification and the Respondent would be entitled to 75% abatement. 18. The Appeal filed by the Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
