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TMI Blog2021 (10) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... ve received - fastening of service tax liability without specifying the consideration for service as provided under Section 67 of the Chapter V of Finance Act, 1994 - fastening of service tax liability in absence of the relationship of service provider and service receiver - Invocation of extended period of limitation - section 73(1) of the Finance Act, 1994. HELD THAT:- The reference was answered by the Larger Bench of the Tribunal in KAFILA HOSPITALITY TRAVELS PVT. LTD. VERSUS COMMISSIONER, SERVICE TAX, DELHI [ 2021 (3) TMI 773 - CESTAT NEW DELHI] . The issues are answered as below: Whether the Incentive received by service receiver from service provider, on appreciable performance, can be subjected to service tax? - HELD THAT: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x issues, the impugned order dated May 20, 2015 passed by the Commissioner cannot be sustained and is set aside - Appeal allowed. - Service Tax Appeal No. 59716 of 2013 - Final Order No. 51831/2021 - Dated:- 17-9-2021 - MR. DILIP GUPTA, PRESIDENT AND MR. P.V. SUBBA RAO, MEMBER (TECHNICAL) Ms. Madhumita Singh Shri Sameer Sood, Advocates for the appellant Dr. Radhe Tallo, Authorized Representative for the Respondent ORDER This appeal seeks the quashing of the order dated May 20, 2013 passed by the Commissioner, Service Tax Commissionerate, New Delhi [Commissioner], by which the demand of service tax has been confirmed by invoking the extended period of limitation contemplated under the proviso to section 73(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or appreciating these issues. The appellant is an approved agent of International Air Ticketing Association [IATA] and is engaged in providing air tickets. The travel industry basically comprises of five key players namely airlines, travel agents, Central Reservation System [CRS] Companies, sub-agents and passengers. The airlines provide air transport services to passengers and discharge their service tax liability in terms of section 65(3b) read with section 65(105)(zzzo) of the Finance Act, 1994 [Finance Act]. The travel agents accredited by IATA are authorized to sell the air travel services provided by airlines to customers/sub-agents in the form of airline tickets. CRS Companies provide an online portal for booking of tickets offered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also allow IATA agents to subscribe to their portals for booking tickets for the passengers/sub-agents. Earlier, the IATA agents were charged by the CRS Companies for access to the portals. However, due to increasing competition in the market, the CRS Companies stopped charging the agents for booking through the portal and instead, in order to increase the flow of business, the CRS Companies started to part with a portion of their consideration (charges/commission) and paid the same to the IATA agents when the agents achieve a minimum quantum of bookings through the concerned CRS portal. This incentive is normally termed as CRS commission . The three CRS Companies involved are Amadeus India Private Limited, Interglobe Technology Quotient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided by the client; or read with section 65(105)(zzb) of the Act. 8. In respect of the first issue, the finding recorded by the Commissioner is as follows :- 18. In view of the abovementioned facts it is clear in its prestine form that all the three Software companies has provided their CRS to the notice as a marketing or sales strategy sole motive of increasing their business and market share with the increased usage of Amadeus Galileo CRS and so all these Software companies give incentive/commission to the noticee in order to increase the use of Amadeus Galileo CRS and thereby augmenting their own revenue. The facts that the CRS is being used by the noticee themselves does not alter the situation for M/s Amadeus Galileo M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marketing of service provided by the client; or read with section 65(105)(zzb) of the Act and I hold it accordingly. 10. The Commissioner, thereafter, by order dated May 16, 2013, confirmed the demand of service tax by invoking the extended period of limitation contemplated under the proviso to section 73(1) of the Finance Act. 11. The aforesaid reference was answered by the Larger Bench of the Tribunal by order dated March 18, 2021. 12. The Larger Bench, in paragraph 84, observed as follows: 84. The inevitable conclusion, therefore, that follows from the above discussion is as follows: (i) the air travel agent is promoting its own business and is not promoting the business of the airlines; (ii) the air travel agent is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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