2013 (12) TMI 967

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sher Airlines Ltd.) are in the business of transporting passengers by air. While transporting the passengers, the baggages of passengers are also transported. There is a free allowance for carrying of baggage and any baggage in excess of free allowance is liable to transportation charges. The Revenue was of the view that charges collected by the Airlines for the excess baggage is liable to Service Tax under the category of Transportation of Goods by Air' and accordingly, notices dated 19.10.2010 and 1.10.2011 demanding Service Tax of Rs. 58,30,000/- for the period 2005-06 to 2009-10 and Rs. 3,14,43,719/- for the period 2010-11 were issued. The notices were adjudicated and the demands were confirmed along with interest thereon and also impos....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e provided is a single composite service which may include various intermediary and ancillary services such as loading/unloading, packing/unpacking, transshipment, temporary warehousing. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In such a case, whether the intermediary or ancillary activities is to be treated as part of GTA service and the abatement should be extended to the charges for such intermediary or ancillary service?    Clarification: GTA provides a service in relation to transportation of goods by road which is a single composite service. GTA also issues consignment note. The composit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oods, and the charges, if any, for such services are included in the invoice issued by the GTA, and not by any other person, such service would form part of GTA service and, therefore, the abatement of 75% would be available on it. From the above clarifications issued by the Board, the classification of a service depends upon the nature of the service rendered and in the present case, the principal service rendered is transportation of passengers by air. Therefore, the question of 'transportation of goods by air' service would not arise separately in respect of excess baggage. He also pleads financial hardship, as the appellant company is not operating the airlines now. Accordingly, he prays for grant of stay. 4. The learned Addl. Commiss....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gage is not an individual or separate service, but it is a component of the principal service, and the principal service is transportation of the passenger by air. The Board has also clarified this position vide the circular dated 29.2.2008 which states that - for the purpose of classification of a service covering number of separate services, a view has to be taken as to whether an individual service is merely a component of the overall supply or is itself a distinct and independent supply. 5.2 In the present case, we are of the considered view that the transportation of baggage is not an individual or a separate service, but it is a part of transportation of passengers' service by air. In the case of N. Rajashekar & Co. Vs. Commissioner ....