https://www.taxtmi.com/caselaws?id=451078 CESTAT Chandigarh held that travel agents purchasing airline tickets from co-GSA/IATA operators and selling to customers do not render taxable business auxiliary services. The relationship between agents and co-operators operates on principal-to-principal basis, not principal-agent. Commission earned represents trade margin from ticket sales, not service consideration. Extended limitation period was improperly invoked without evidence of suppression or intent to evade tax. Following precedent in Om Air Travels case, the tribunal concluded trade margins from ticket purchase and resale are not subject to service tax. Appeal allowed, demand set aside. en-us Tue, 19 Mar 2024 00:00:00 +0530 Tue, 19 Mar 2024 17:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451078 CESTAT Chandigarh held that travel agents purchasing airline tickets from co-GSA/IATA operators and selling to customers do not render taxable business auxiliary services. The relationship between agents and co-operators operates on principal-to-principal basis, not principal-agent. Commission earned represents trade margin from ticket sales, not service consideration. Extended limitation period was improperly invoked without evidence of suppression or intent to evade tax. Following precedent in Om Air Travels case, the tribunal concluded trade margins from ticket purchase and resale are not subject to service tax. Appeal allowed, demand set aside. Case-Laws Service Tax Tue, 19 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451078