Appellate Tribunal rules Haj tours exempt from service tax

The Appellate Tribunal CESTAT Bangalore clarified that outbound tours for performing Haj to Mecca and Medina are not liable for service tax under 'Tour Operator services', following established legal precedents. The impugned orders were set aside, and all appeals were allowed in favor of the appellant, granting consequential relief.

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Issues involved:
Identification of liability for service tax on outbound tours for performing Haj to Mecca and Medina under the category of 'Tour Operator services'.

Detailed Analysis:

Issue 1: Liability for service tax on outbound tours
The main issue in the appeals was whether the appellant, organizing outbound tours for performing Haj to Mecca and Medina, is liable to pay service tax under the category of 'Tour Operator services'. Both parties agreed that this issue had been previously addressed by the Tribunal in the case of Cox and Kings India Ltd., which set a precedent. The Tribunal's decision in the case of M/s. Atlas Tours & Travels Pt. Ltd. was referenced for further clarity. The Tribunal held that the activity of outbound tours abroad is not taxable under tour operator services, following the precedent set by earlier decisions. The Tribunal cited instances where this ratio had been followed by other benches, such as the Mumbai Bench and the Bangalore Bench. Therefore, based on the established legal position and precedents, the impugned orders were set aside, and all the appeals were allowed in favor of the appellant, granting consequential relief.

In conclusion, the judgment by the Appellate Tribunal CESTAT Bangalore clarified the liability for service tax on outbound tours for performing Haj to Mecca and Medina under the category of 'Tour Operator services'. The decision was based on established legal precedents and previous Tribunal rulings, ultimately ruling in favor of the appellant and providing consequential relief.

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