2013 (8) TMI 710

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.....07.10. However, Revenue was of the view that when an aircraft is given on charter to other companies, it amounts to supply of tangible goods a taxable service as defined under section 65 (105) (zzzzj). There is difference in the manner of calculation of service tax liability under the two different heads. The liability would be higher if the service is considered as supply of tangible goods. 2. For convenience, the above two sections are reproduced below : (105) taxable service means any service provided or to be provided, --- (zzzo) to any passenger, by an aircraft operator, in relation to scheduled or non-scheduled air transport of such passenger embarking in India for domestic journey or international journey --- [(zzzzj) to any p....

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....red as supply of tangible goods by Revenue. According to her, when there is an entry specifically for taxing transport of passenger by aircraft, the activity cannot be brought under a more general entry like supply of tangible goods. So she prays that the appeal may be admitted without any pre-deposit. 5. Opposing the prayer, Ld. AR for Revenue submits that under section 65 (105) (zzzo), the service rendered to any passenger is made taxable. So it should be seen whether any passenger was paying the fare for transportation. He submits that in all these cases payment for the services was made by the companies to whom the aircraft was made available as per the charter agreement. The licence issued by DGCA authorizes the applicant to operate e....