Tour operator services wholly begun, performed and ended within Jammu and Kashmir were outside the territorial reach of Chapter V of the Finance Act, 1994, because the levy operated only within its territorial limits and the State was excluded from section 64. Planning or booking activity outside the State did not bring the tours into the service tax net when the service was consumed within the excluded territory. The impugned demand was therefore set aside in full, the assessee's appeal was allowed, and the Revenue's appeal failed.
Tour operator services wholly begun, performed and ended within Jammu and Kashmir were outside the territorial reach of Chapter V of the Finance Act, 1994, because the levy operated only within its territorial limits and the State was excluded from section 64. Planning or booking activity outside the State did not bring the tours into the service tax net when the service was consumed within the excluded territory. The impugned demand was therefore set aside in full, the assessee's appeal was allowed, and the Revenue's appeal failed.
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