To defend its case, appellant stated that:

(1) the amount being received by the Appellant for the supplementary services like guide services, monument visit services, porter services, food services, general assistance services etc.

(2) The foreign tourists pay in advance to the principal tour operators (PTOs) for their tour of India and the PTOs pay service tax on the whole amount, received from the foreign tourists.

(3) The amount charged by the PTOs also includes the charges for the supplementary services like guide services, monument visit services, porter services, food services, general assistant services etc.

(4) The Appellant while providing the supplementary services on behalf of the PTOs, get the reimbursement for the expenses on these service from the PTOs on actual basis.

(5) Charging service tax on the supplementary services would, therefore, amount to taxing the same services twice.

After hearing the case, in the present matter, reported in 2008 -TMI - 31312 - CESTAT NEW DELHI, tribunal held that:

"………………, throughout the period of dispute, the supplementary services of arranging guide services, monument visit services porter services, food services general assistance services etc. were covered by the definition of "tour operator service" and hence the same attracted service tax. It is not material as to whether the Appellants charged the PTOs for these services on actual basis or otherwise."

On the issue of invoking extending period of limitation for issuance of SCN, cestast held that:

"……… the extended limitation period of five years has under proviso to Section 73 (1) of the Finance Act, 1994 has been rightly invoked by the Adjudicating Authority."

(For full text of judgment - visit 2008 -TMI - 31312 - CESTAT NEW DELHI)

Tour operator service: supplementary services are taxable even when supplied through reimbursement, and extended limitation may apply. The tribunal held that supplementary activities such as guide services, monument visits, porter services, food services and general assistance constitute tour operator service and attract service tax irrespective of whether these are charged on actual reimbursement. The tribunal also upheld application of the extended limitation period under the proviso to the limitation provision for issuing a show-cause notice.