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TMI Blog2023 (9) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... n to include a person whose activity is nothing other than mere trading in air tickets. It is an admitted fact on record that insofar as the other activities are concerned, the appellant has admitted and paid applicable Service Tax. It is also an undisputed fact that the appellant is not a member of or agent of IATA and that it is not the case of the Revenue that the appellant had earned any commission from IATA or any other airlines when it sold or traded in air tickets. Moreover, from the definition of tour operator service, the same involves a gamut of activities and there is nothing to suggest that trading in air tickets per se invited Service Tax. The demand of Service Tax on the consideration and for booking of tickets in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... general companies and organizing tour package for both inbound and outbound tours. 1.2 It appears that in respect of tours wherever they had booked air tickets, the appellant had raised two separate bills, one for air ticketing and another for other services . In respect of the tours within India i.e., inbound tours, for services such as accommodation/sightseeing, etc., the appellant had paid Service Tax at applicable rates under Notification No. 01/2006-S.T. dated 01.03.2006, as amended. It appeared that they had not included the air ticketing charges and other expenses, namely conference expenses, in the value of tour operator services, which according to them was not amenable to Service Tax, in their S.T.-3 returns. 2.1 The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of air tickets. On merits, they appear to have contended that they were trading air tickets bought from travel agents who were authorised to sell tickets of airlines and such travel agents were the members of IATA; but the appellant was not a member of IATA and neither was it rendering services as agent of any airlines. Further, that the air tickets bought from agents were traded sometimes with profit and sometimes they were forced to sell at loss; trading in any case was not a taxable event and hence, no Service Tax could be demanded on the trading profit; that if at all they had earned, they had registered as tour operator and Service Tax, wherever applicable, on the gross receipts are being discharged by them, including the value of air ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was concerned, but restricted the liability only to the extent of mark-up or the margin earned. It is against this part of the impugned order that the present appeal has been filed before this forum. 5. We have heard Shri A.S. Harihara Kumar, Ld. Chartered Accountant and Shri N. Satyanarayanan, Ld. Assistant Commissioner. We have carefully considered the orders of lower authorities. 6.1. The definition of tour operator service under Section 65(115) of the Finance Act, 1994, as amended with effect from 10.09.2004, reads as under: - tour operator means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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