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TMI Blog2024 (8) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the airport authorities on whose behalf it has been collected. It is coming out from the SCN that with respect to remaining two heads i.e Fuel and Insurance Surcharge an amount of Rs. 23,02,960/- has already been paid by the appellant alongwith the interest as is recording in para three of the SCN. However, none of the Adjudicating Authorities below have taken note of this amount and the demand on four of the heads has been confirmed. The Commissioner (Appeals) has remanded the matter directing the adjudicating authority to re-calculate the demand of Service Tax in the light of the findings arrived at by the Commissioner (Appeals) and to rework the demand alongwith the interest - Appeal allowed by way of remand. - DR. RACHNA GUPTA, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants, during investigation, department observed that the appellants were collecting the total fair from the passenger under the following heads:- (i) Total Basic Fare (ii) Fuel Surcharge Insurance Surcharge (iii) PSF (iv) Airport taxes 3. The appellants were observed to have failed to discharge their service tax liability on four of the said amounts, so collected. Accordingly, vide Show Cause Notice No.79/07 dated 28.07.2008 an amount of Rs.29,78,023/- (twenty nine lakhs seventy eight thousand twenty three only) was proposed to be recovered from the appellants alongwith appropriate interest on the said amount. Penalty under section 76 and 77 of Finance Act was also proposed to be imposed. The proposal has been confirmed vide the Order-i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sa German Airlines vs. Commissioner of Central Excise Service Tax, Delhi (Gurgaon) wherein it has been held : 7 . We have perused the various documents submitted by the appellant in support of their defence in the present appeals. The appellants pleaded that the Passenger Service Fee (PSF) is a statutory levy in terms of Section 22 of the Airport of India Act, 1994. We have perused the said decision. The same provides for Authority to charge fee, rent, etc. The Authority may with the previous approval of the Central Government charge fee or rent for providing various services in the airport. These services may be in the nature of landing, parking of aircrafts, air flight services, amenities given to the passengers, etc. In effect, these cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are in agreement with the appellant that addition of PSF in the taxable value at the hands of the appellant may result in double taxation. Admittedly, the PSF is forming part of airport service in terms of Section 65(105)(zzm). The very same PSF cannot be subjected to service tax under transport of passenger service. 7. We find no reason to differ from these findings. Hence these findings are sufficient for us to hold that the demand confirmed is not sustainable. In view thereof also the order is liable to be set aside. 8. The Commissioner (Appeals) has remanded the matter directing the adjudicating authority to re-calculate the demand of Service Tax in the light of the findings arrived at by the Commissioner (Appeals) and to rework the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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