2023 (1) TMI 1047 - AT - Service Tax

CESTAT AHMEDABAD: Case Remanded for Fresh Assessment.

M/s. Ram Krishna Travels P. Ltd. Versus C.C.E & S.T. –Vadodara-I

M/s. Ram Krishna Travels P. Ltd. Versus C.C.E & S.T. –Vadodara-I - TMI Issues:1. Whether the activity undertaken by the appellant falls under taxable service provided under 'tour operator service.'Analysis:The appellant, engaged in the business of Tour Operator and Travel Agent, provided specially designed tourist packages with additional charges for stay, meals, and sightseeing. The department observed discrepancies in the amount charged from customers and the amount paid to airlines, leading to a demand for service tax. The appellant argued that they were merely operating tours without planning or organizing them, citing previous judgments. They contended that the complimentary packages provided did not constitute taxable services under Tour Operator Service. The appellant also claimed abatement under Notification No. 01/2006-ST if charges were accepted. The department maintained that the appellant should pay service tax under the category of 'Tour Operator Service' for the total value of the ticket, including the package tour cost.The Tribunal analyzed the definition of 'Tour Operator' under Section 65(115) and noted that the appellant did not provide consultancy for planning, organizing, or arranging tours. Referring to the Jet Airways case, the Tribunal held that similar tour packages offered by airlines were not covered under Tour Operator Service. They directed the reconsideration of the matter by the adjudicating authority in light of the appellant's relied-upon judgments. The Tribunal also highlighted the need to reexamine the limitation issue and the proper examination of facts regarding suppression. Consequently, the impugned order was set aside, and the appeal was allowed by remand to the adjudicating authority for a fresh assessment, ensuring the appellant's right to submit documents and have a personal hearing.The judgment emphasized that all issues should be reconsidered, granting the appellant a fair opportunity for representation and documentation. The decision was pronounced on 23.01.2023 by the Appellate Tribunal CESTAT AHMEDABAD, comprising MR. RAMESH NAIR, MEMBER (JUDICIAL), and MR. RAJU, MEMBER (TECHNICAL). The appellant's arguments, supported by legal precedents and interpretations, played a crucial role in the Tribunal's decision to remand the case for further evaluation by the adjudicating authority.