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TMI Blog2023 (10) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... ONER OF GST CENTRAL EXCISE, CHENNAI [ 2022 (4) TMI 1035 - CESTAT CHENNAI] , wherein this Tribunal has observed the said incentive is not subject to levy of service tax. The issue is no more res integra in the light of the decision of the Larger Bench as well as followed by this Tribunal in the case of Asveen Air Travels (P) Ltd., it is held that the incentive/commission received by the appellant from M/s. Galileo India Pvt. Ltd. is not liable to service tax, in terms of section 65(19) of the Finance Act, 1994. The impugned order set aside - appeal allowed. - MR. R. MURALIDHAR MEMBER (JUDICIAL) AND MR. K. ANPAZHAKAN MEMBER (TECHNICAL) Shri Anirban Ghosh, Advocate for the Appellant Shri J. Chattopadhyay, Authorized Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Company, rail road, tour operation or other supplier of other travel relates services included or accessible through the Galileo system. The Galileo CRS provides the user information regarding schedule, fares, availability of air transport and other travel related services and through which reservation can be made and/or tickets issued. It therefore appeared that the said incentive/commission has been given to the Appellant by M/s. Galileo for promoting the business of M/s. Galileo/Amex to work as an interface between the service provider, as aforesaid, and the clients/customers. Thus the said activity of the Appellant appears to be classifiable under Business Auxiliary Service within the meaning of sub-section 19 of section 65 of Chapt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant for using CRS service is subject to service tax or not. 7. We observe that the said issue has been settled by the Larger Bench of this Tribunal in the case of Kafila Hospitality Travels Pvt. Ltd. (supra), which has been followed by this Tribunal in the case of Asveen Air Travels (P) Ltd. (supra), wherein this Tribunal has observed as under:- 5 . The issue that arises for consideration is whether the incentive received by the appellant for using the CRS Developer is subject to service tax or not. The Larger Bench in the case of Kafila Hospitality and Travels Pvt. Ltd. (supra) has held that the said incentive is not subject to levy of service tax. The relevant para is noted under:- 2. Certain essential facts need to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o passengers/sub-agents. For sale of tickets, the IATA agents receive commission from the airlines. In addition to the said commission received for booking of airline tickets, the airlines also incentivize IATA agents by paying target-based incentives, which are linked to guaranteed booking of a minimum number of airline tickets. In certain cases, sub-agents also book airline tickets through IATA agents. In a situation where a sub-agent achieves a pre-determined target of bookings through a particular IATA agent, the IATA agent pays an incentive to the sub-agent. 4. The CRS Companies provide OIDAR services to airlines. In lieu of these services, the airlines pay consideration to the CRS Companies in the form of charges/commission . T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by rendering of services connected to travel by air, a travel agent would render air travel agent services, which services cannot be said to be for promotion or marketing for the airlines. (Q) Whether the air travel agent is promoting the business of CRS companies xx xx xx 71. This apart, the definition of BAS would also reveal that the service provider must promote or market the service of a client. As noticed above, it is not a case where the air travel agent is promoting the service of airlines/CRS Companies. The air travel agent is, by sale of airlines ticket, ensuring the promotion of its own business even though this may lead to incidental promotion of the business of the airlines/CRS Companies. Thus, in terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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