Service tax on outbound tour operations depends on the amended tour operator definition and pre-negative list charging provisions.

For the pre-negative list service tax regime, taxability of outbound tour activities depends on the amended definition of "tour operator" and the factual nature of the service rendered under the charging and valuation provisions of the Finance Act, 1994. The inclusive wording of the amended definition was treated as not limiting the main definition, and prior pre-amendment interpretation was held not to control the amended regime. For the period 01.04.2005 to 31.03.2011, taxable territory was not a separate determining factor; the levy turned on whether the service fell within the enumerated taxable service and was rendered in India.

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Issues: (i) Whether the activity undertaken by the appellant in relation to outbound tours is taxable under section 65(105)(n) of the Finance Act, 1994, having regard to sections 65, 66 and 67 of that Act; (ii) Whether the dispute for the period 01.04.2005 to 31.03.2011 requires determination of taxable territory for levy of service tax.

Issue (i): Whether the activity undertaken by the appellant in relation to outbound tours is taxable under section 65(105)(n) of the Finance Act, 1994, having regard to sections 65, 66 and 67 of that Act.

Analysis: The amended definition of "tour operator" was held to cover planning, scheduling, organising or arranging tours by any mode of transport, with the inclusive part not restricting the main part of the definition. The earlier interpretation of the pre-amendment regime was held not to control the amended provision. Taxability of outbound tour activity was stated to depend on the facts of the case and the intent of the charging and valuation provisions.

Conclusion: The taxability of the appellant's activity was not finally determined and was left to be decided on the facts of the case under the relevant charging and valuation provisions.

Issue (ii): Whether the dispute for the period 01.04.2005 to 31.03.2011 requires determination of taxable territory for levy of service tax.

Analysis: The relevant period fell before the negative list regime. In that regime, the levy turned on whether the service fell within the enumerated taxable service and whether it was rendered in India, and not on a separate taxable territory analysis applicable under the later regime.

Conclusion: Taxable territory was held not to be a factor for the dispute for the relevant period.

Final Conclusion: The reference was answered by holding that the appeal must be decided on its own facts and under the applicable Finance Act provisions, and that taxable territory was not a separate determining issue for the period in dispute.

Ratio Decidendi: For the pre-negative list service tax regime, taxability of a service must be determined by the statutory charging framework and the factual nature of the service rendered, while the later concept of taxable territory does not govern such disputes.

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