CESTAT Chennai Orders Air Travel Agent to Deposit Rs. 1,00,000 for Tax Waiver The Appellate Tribunal CESTAT CHENNAI directed the applicant, an Air Travel Agents Service, to deposit Rs. 1,00,000 within six weeks for waiver of the ...
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CESTAT Chennai Orders Air Travel Agent to Deposit Rs. 1,00,000 for Tax Waiver
The Appellate Tribunal CESTAT CHENNAI directed the applicant, an Air Travel Agents Service, to deposit Rs. 1,00,000 within six weeks for waiver of the balance tax, interest, and penalty. Compliance was required by 19.08.2013, with recovery stayed during the appeal's pendency. The decision was based on a previous case involving Milesworth Travel and Tours Pvt. Ltd. Vs. CST, Chennai, differing from the Delhi Bench's unconditional stay in a similar matter.
Issues: Application for waiver of pre-deposit of tax, tax demanded on commissions received from software company, differing decisions in previous cases regarding pre-deposit amount.
In this judgment by the Appellate Tribunal CESTAT CHENNAI, the applicant filed an application seeking waiver of pre-deposit of tax amounting to Rs.4,54,459/- along with interest and penalty. The applicants, registered under Air Travel Agents Service, were taxed on commissions received from computer reservation systems (CRS) software companies, namely M/s. Abacus and M/s. Amadues, for booking air tickets for customers. The Ld. Advocate cited a case where unconditional stay was granted by the Delhi Bench on a similar issue. On the contrary, the Ld. DR mentioned a case where pre-deposit of 25% of the tax amount was directed by this Bench.
The Tribunal noted that in the case of Jose Travels, there was a difference of opinion between the members, but due to the meager amount involved, stay was granted without referring it to the third member. Considering the decision of the Tribunal of this Bench in Milesworth Travel and Tours Pvt. Ltd. Vs. CST, Chennai, the Tribunal directed the applicant to deposit Rs. 1,00,000.00 within six weeks. Upon compliance with this deposit, the pre-deposit of the balance tax along with interest and penalty was waived, and the recovery thereof stayed during the pendency of the appeal. The compliance was to be reported on 19.08.2013. The order was dictated and pronounced in the open Court by Shri. P.K. Das.
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