2015 (2) TMI 476 - AT - Service Tax

Tribunal rules in favor of appellant in service tax liability appeals

The Tribunal ruled in favor of the appellant in four appeals regarding service tax liability on outbound tours categorized as 'Tour Operator Services.' ... Tour Operator Services - Appellant had conducted 'Outbound Tours' of Haj-Umrah to Makkah and Madina, during the material period and did not discharge the service tax liability on the amounts so collected - Held that:- Following decision of M/s Cox & Kings India Ltd. vs. CST, New Delhi [2013 (12) TMI 1024 - CESTAT NEW DELHI] and this ratio has been followed by the Mumbai Bench in the case of Travel Corporation (India) Ltd. Thomas Cook (India) Ltd. vs. CST, Mumbai [2014 (8) TMI 826 - CESTAT MUMBAI] - this issue is squarely covered in favour of the appellant. Accordingly, in view of the foregoing and the judicial pronouncements, we find that the impugned orders are unsustainable and liable to set aside - Decided in favour of assessee. Issues involved:1. Service tax liability on outbound tours under 'Tour Operator Services.'Analysis:The judgment pertains to four appeals by the same appellant concerning the service tax liability on outbound tours categorized as 'Tour Operator Services.' The Revenue alleged that the appellant conducted tours to Haj-Umrah without discharging the service tax liability on the collected amounts. The Revenue argued that since the amounts were not in foreign currency and the recipients were from India, the activity is taxable. However, the appellant contended that the services were consumed abroad, and the definition should not apply to tour operator services.The appellant's counsel referenced a previous decision by the Tribunal in the case of M/s Cox & Kings India Ltd. vs. CST, where it was held that outbound tours abroad are not taxable under tour operator services. The counsel also mentioned similar rulings by the Mumbai Bench and the Bangalore Bench, supporting the appellant's position. The Departmental Representative failed to provide any contradictory decision.Upon reviewing the records and case laws cited, the Tribunal found that the issue was in favor of the appellant. Consequently, the Tribunal held that the impugned orders were unsustainable and set them aside, allowing the appeals. The judgment emphasizes the precedence set by previous decisions and the absence of opposing rulings, leading to a favorable outcome for the appellant in terms of service tax liability on outbound tours under 'Tour Operator Services.'