9911796707
TMI Blog2023 (5) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... The air travel agent in his fortnightly return gives the particulars of tickets cancelled or modified and adjusts the commission accordingly subject to final approval by the airlines. Since the commission is adjusted automatically and the service tax is paid on the net commission received, the question of separately claiming refund of service tax need not arise. The Department has preferred an Appeal before the Punjab Haryana High Court which has held that It was noticed in the circular that cancellation or modification of tickets is a common phenomenon and frequent feature in air travel. Details of cancelled or modified tickets are provided by a travel agent in the fortnightly returns filed and adjustment of the commission is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent had issued Trade Notice No. 6/97-ST dated 1/7/1997 wherein it is clarified that cancellation of Air tickets is very common practice. Accordingly, it is clarified that if credit notes are issued on amount of cancellations, the Service Tax already paid can be adjusted in the further payments. 4. The Learned Consultant also relies on the case law of Janta Travels (P) Ltd. Vs. Commr. of C. Ex., Chandigarh 2007 (8) S.T.R. 587 (Tri.-Del.) which has been affirmed by the High Court of Punjab and Haryana as reported in 2009 (13) S.T.R. 488 (P H). 5. The Learned AR reiterates the findings of the lower authorities and submits that as per the Point of Taxation Rules, 2011, the Service Tax is required to be discharged, the moment the Invoice i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax liability instead of paying tax at the rate of 5% on the actual commission received from the air lines. (Notification No. 20/97-S.T. refers). Basic fare is defined as that part of the fare on which commission is payable by the air lines. It is reported that this normally does not include the passenger service fee and the taxes. However, this aspect may be verified by the Commissioners and action taken accordingly. Cancellation or modification of tickets is a very common and frequent feature in air travel. The air travel agent in his fortnightly return gives the particulars of tickets cancelled or modified and adjusts the commission accordingly subject to final approval by the airlines. Since the commission is adjusted automatical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the commission is made subject to final approval of the airlines. The commission is ultimately paid by the airlines on the net commission received by a travel agent. Accordingly, no question arises for separate claim of refund of service tax. 5. The contention of learned counsel for the Revenue that the respondent-assessee should have made an application for claiming the refund has no legs to stand, in view of the circular of the Board, as is relied upon by the Tribunal . [Emphasis supplied] 9. Since the Appellant has been following the practice as per the Trade Notice No. 6/97-ST dated 1/7/1997 issued by the DOR and issue is also squarely covered by the decision of the Delhi Tribunal duly affirmed by the Hon ble Punja ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
