https://www.taxtmi.com/caselaws?id=450815 The CESTAT NEW DELHI held that incentives received by air travel agents from airline companies are not subject to service tax as they constitute trading activity rather than service provision. The Tribunal distinguished between commission, which has direct nexus to booking services and is taxable, and incentives, which represent profit from price differences between client charges and negotiated airline rates. The adjudicating authority's finding that incentives constitute consideration for business promotion services was set aside, following Larger Bench precedent that agents promote their own business, not airlines' business. Revenue's appeal regarding dropped demands on discounts and market price adjustments was dismissed as these were linked to non-taxable freight. The impugned order was set aside and Revenue's appeal dismissed. en-us Wed, 13 Mar 2024 00:00:00 +0530 Wed, 13 Mar 2024 14:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450815 The CESTAT NEW DELHI held that incentives received by air travel agents from airline companies are not subject to service tax as they constitute trading activity rather than service provision. The Tribunal distinguished between commission, which has direct nexus to booking services and is taxable, and incentives, which represent profit from price differences between client charges and negotiated airline rates. The adjudicating authority's finding that incentives constitute consideration for business promotion services was set aside, following Larger Bench precedent that agents promote their own business, not airlines' business. Revenue's appeal regarding dropped demands on discounts and market price adjustments was dismissed as these were linked to non-taxable freight. The impugned order was set aside and Revenue's appeal dismissed. Case-Laws Service Tax Wed, 13 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450815