Appellant Exempt from Service Tax for Visa Facilitation & Customer Care Services

The Tribunal held that the appellant was not liable to pay service tax under the category of business auxiliary service for activities related to visa facilitation and customer care services. The Tribunal referenced a circular clarifying that certain services provided by visa facilitators were not taxable, aligning the appellant's services with those exempted. The impugned order demanding service tax, interest, and penalties was set aside, and the appeal was allowed with any necessary relief.

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Issues:
Whether the appellant is liable to pay service tax under the category of business auxiliary service for the activities related to visa facilitation and customer care services.

Analysis:
The appellant appealed against the demands confirmed by the impugned orders and sought a stay. The issue involved was whether the appellant was liable to pay service tax under the category of business auxiliary service for their activities related to visa facilitation and customer care services. The department contended that the appellant's activities, including filling visa application forms, collecting visa fees, providing lounge facilities, and charging for food and beverages for visa seekers, fell under the taxable service category. Three show-cause notices were issued for the period from July 2003 to March 2010, and demands were confirmed in the impugned order, along with interest and penalties under the Finance Act, 1994.

Upon hearing both sides, the Tribunal referred to Circular No. 137/6/2011-ST dated 20/04/2011, which clarified that certain services provided by visa facilitators, such as assisting individuals to obtain visas, did not fall under taxable services. The appellant's services were found to align with those discussed in the circular, leading to the conclusion that the activities undertaken by the appellant were not taxable under Section 65(105) of the Finance Act, 1994. The Tribunal also noted that for the subsequent period of 2010-11, the Joint Commissioner had already dropped the show-cause notice demanding service tax on similar activities based on the circular.

In light of the observations and the circular, the requirement of pre-deposit of impugned demands was waived, and the appeal was taken up for disposal. The Tribunal held that the appellant was not liable to pay service tax on the activities in question. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief deemed appropriate.

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