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TMI Blog2024 (11) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... partment has not pointed out any activity undertaken by an air travel agent that promotes the business of the CRS company and therefore, the incentives received by service recipient from a service provider cannot be subjected to service tax. The principle of law settled by the Larger Bench squarely applies to the facts of the present case and hence no service tax can be levied on the appellant on account of incentives received from the CRS companies. Activity of providing services in relation to outbound tour in locations outside the territory of India - whether the appellant was involved in rendering the other services as scheduled in the definition of the tour operator service , which will result in the liability to discharge the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the period, 2010-12, they are liable to pay interest in terms of section 75 of the Act. Extended period of limitation - The facts of the present case shows that that Adjudicating Authority has recorded a finding that the appellant had contravened the provisions of the Service Tax Act and the Rules. Referring to the various provisions of the Act, it was noticed that the obligation cast on the appellant by the statutory provisions required them to file proper periodical returns and discharge the service tax liability accordingly, which the appellant had failed to do so. The present case had initiated because of the enquiry conducted by the officers of the department and in the absence thereof, the evasion of tax would not have come to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... servation System (CRS) incentive for booking of air tickets by using the software and hardware provided by the CRS company Galileo/Amadeus. In case of outbound tours, the appellant organises tours outside the territory of India for Indian tourist to facilitate them to visit various local places outside India. 5. In Appeal No. 50041/2017, Show cause notices dated 17.04.2012 and 22.04.2013 were issued to the appellant for the period 01.10.2010 to 30.09.2011 and 01.10.2011 to 30.06.2012 for Rs. 2,84,406/- and Rs. 3,26,748/- respectively. Similarly, in Appeal No. 50042/2017, SCN dated 24.03.2011 for the period 2005-06 to 2010-11 (upto September 2010) for Rs. 1,37,242/- was issued. On adjudication, the service tax amount as proposed was confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passage for travel by air. The services in question are booking of airlines tickets and for achieving a pre-determined target, the air travel agent also receives an additional amount in the form of incentives/commission from the airlines or the CRS Companies. The receipt of incentives/commission would not change the nature of the services rendered by the travel agent. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the definition of tour operator service underwent a change w.e.f. 10.09.2004 when the amended definition introduced the services such as planning, scheduling, organising, or arranging towards arrangements for accommodation, sightseeing, or other similar services as to operator service. Though the tour itself was not a taxable event, but the activities related to arrangement of a tour would fall within the said definition. Having held so, the reference was answered as under: i) the taxability of activity undertaken by the appellant will have to be decided on the facts peculiar to the case and in accordance with intent of section 65, section 66 and section 67 of the Finance Act. ii) the dispute in this appeal, i. e., from 01.04.2005 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded a finding that the appellant is not receiving the payment against the provision of outbound tours in foreign exchange and therefore the provisions of Export of Service Rules, 2005 are not applicable. 11. In view of our discussion above, we conclude as under: (i) that no service tax is leviable on the CRS incentives received by the appellant. (ii) the services of planning, scheduling, organising, or arranging tours, arrangements for accommodation, sightseeing, or other similar services as to operator service rendered by the appellant are chargeable to service tax under the Act. 12. Having held that, the appellant is liable to pay service tax on outbound tours service which they have not paid/short paid during the period, 2010-12, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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