TaxTMI 
TaxTMI 
2012 (9) TMI 301
X X X X Extracts X X X X
X X X X Extracts X X X X
....ational air tickets on the basic fare at the rate notified from time to time in terms of the option given under Rule 6(7) of the Service Tax Rules. 2. Proceedings were initiated against the appellants for demand of Service tax in respect of commissions from the companies providing computer reservation system (CRS) as also in respect of commission for providing some other services such as car hire, hotel booking, foreign currency exchange, railways reservations etc. under the category of rent-a-cab operator and business auxiliary services and rail travel agents. The said proceedings culminated into impugned order confirming demand of Service tax of Rs. 12,94,443/- and imposing identical penalty under Section 78 of the Finance Act along....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... travel agent in respect of services provided by him and tax levied by any government on any passenger travelling by air if shown separately on the tickets, shall not be included in the taxable value. Thus, they are specifically excluded. Accordingly, they have contended that the air travel agent is liable to pay Service Tax on the gross amount collected from the passenger excluding the value of air fare under Rule 6(2) of the Rules. The differential amounts includes the commission/incentive received by the air travel agent in any form from the airline or service charges charged from the passenger. Accordingly, it is their contention that the option one is that the Air Travel Agent can pay the service tax at the rate specified in Section 66....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e of the Domestic and International tickets booking whereon they had discharged the service tax liability, nor they have submitted any documentary evidence in support to their claim. They are not entitled to get the benefit as claimed by them." 6. As is seen from the above, there is no dispute about the legal position. The original adjudicating authority have upheld the impugned order only on the ground that there are no details of the basic fare of the tickets and there is no documentary evidence in support of their claim. We find that such documentary evidence have now been filed before us. Apart from that we also note that demand has been raised for the period 1-7-2003 to 31-3-2007 by a show cause notice issued on 2-4-2008. The app....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... three entities involved in the matter. These are (i) Airlines (ii) Company providing Computer Reservation System (hereinafter referred to as "CCRS") (iii) Air Travel Agent. The fourth entity namely passenger travelling by air is kept out of the discussion because it is an accepted position that Air Travel Agents are providing service to Airlines and there is no argument that they are just providing service only to the passengers. Though it is argued that the only customers in these activities are passengers the argument is not very central to the dispute. 11. It is accepted that Air Travel Agent is providing service to Airlines and Airlines are making payment to Air Travel Agent. There appears to be some confusion about the classific....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e taxable service is the service provided by the agent to the insurance company. This example may not be a very good example to argue the point because there are special provisions regarding person liable to pay tax in the case of this service. So let me take another example of a person abroad remitting money to a person in India through a bank. The bank provides service to both the persons. Bank collects its charges only from the person remitting the money from abroad and not the person in India. So the taxable service in that situation is the service provided to the person situated abroad. Against the above background, I am of the view that service being intangible its flow cannot be seen. The flow of consideration can be more clearly ide....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er : "Explanation. - For the purpose of this sub-rule, the expression "basic fare" means that part of the air fare on which commission is normally paid to the air travel agents by the airline". The Appellant should have been able to show what was the base fare on which commission was paid to them. The Appellants have been desisting from producing this information which should normally be available easily. This cannot be taken as a bona fide approach. Not supplying information where that is the critical information to charge tax is a positive act of suppression and I cannot agree with the prima facie view held by ld. Member (Judicial) that there is no suppression involved in this case. 16. However I am not able to understand how the ....