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TMI Blog2023 (9) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... SSIONER OF GST CENTRAL EXCISE, CHENNAI [ 2022 (4) TMI 1035 - CESTAT CHENNAI] , wherein this Tribunal has observed once the IATA agent has discharged his service tax liability in terms of section 67 of the Finance Act or rule 6 (7) of the 1994 Rules, no further service tax could be demanded on the amount paid to or passed on by the IATA agent. The incentive/commission received by the appellant from M/s. Amadeus India Pvt. Ltd. is not liable to tax, in terms of section 65(19) of the Finance Act, 1994 - Appeal allowed - decided in favour of appellant. - SHRI ASHOK JINDAL, MEMBER (JUDICIAL) AND SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL) Shri Dipankar Prasad Patra, Authorized Representative for the Appellant (s) Shri J. Chattop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 66 of the Finance Act, 1994, as amended. Therefore, two show cause notices were issued to the appellant which were adjudicated and it was held that the incentive/commission received by the appellant from M/s. Amadeus India Pvt. Ltd. qualify as business auxiliary service under section 65(19) of the Finance Act, 1994 and they are liable to pay service tax. Accordingly, the demand of service tax was confirmed along with interest and penalties were also imposed. Against the said orders, the appellant is before us. 3. The Ld. Counsel appearing on behalf of the appellant submits that the issue is no more res integra in the light of the Larger Bench decision in the case of Kafila Hospitality Travels Pvt. Ltd. vs. Commr. of S.T., De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustry 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 by various airlines. They enter into agreements with airlines for rendering Online Information Data Access and Retrieval [OIDAR] services, wherein they collate data su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 [Amadeus], Interglobe Technology Quotient Pvt. Ltd. [Galileo] and Abacus India [Abacus]. xx xx xx 41. On a consideration of the entire matter it transpires that the following two mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, clearly transpires from the aforesaid decisions that incentives paid for achieving targets cannot termed as consideration and, therefore, are not leviable to service tax under Section 67 of the Finance Act. xx xx xx 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 not promoting the business of the CRS Companies; (iii) in any view of the matter, the classification of the service would fall under air travel agent service and not BAS in terms of the provisions of Section 65A of the Finance Act; and (iv) the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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