TaxTMI 
TaxTMI 
2014 (8) TMI 786
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....ng authority has confirmed service tax demand of Rs. 8,71,86,127/- for the period 01/04/2004 to 31/03/2012 along with interest thereon against the appellant, M/s. Riya Travel & Tours (India) Pvt. Ltd. by classifying the services rendered by the appellant to computerised reservation system (CRS) companies under the taxable service category of 'Business Auxiliary Service'. He has also imposed penalties under Sections 76, 77 and 78 of the Finance Act, 1994. Aggrieved of the same, the appellant is before us. 3. The learned Consultant for the appellant submits that they have entered into agreements with CRS facility providers like M/s. Galileo India Pvt. Ltd., M/s. Abacus Distribution System (India) Pvt. Ltd., M/s. Amadeus and M/s. Sabre.....
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.... air would come under the category of 'air travel agent services' and not under 'business auxiliary services'. 3.2 It is further submitted that, part of the demand is time-barred inasmuch as the show cause notice dated 24/03/2010 seeks to demand service tax for the period from 01/10/2004 to 30/09/2009 i.e., beyond the normal period of one year. Inasmuch as the activities of the appellant were known to the department and usage of CRS software is well known, the appellant could not be alleged to have suppressed any fact necessitating invocation of the extended period of time. It is also submitted that the dispute relates to classification of services and invocation of extended period of time and imposition of penalty is not warrant....
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....or did they disclose the consideration received in the ST-3 returns filed by them. Therefore, the same would tantamount to suppression of facts, necessitating invocation of the extended period of time and consequent imposition of penalties. Therefore, he pleads for putting the appellant to terms. 5. We have carefully considered the submissions made by both the sides. In the records placed before us, there is an agreement entered into by M/s. Galileo India Pvt. Ltd., with the appellant vide offer No. GAL/BOM/022-055. As per the said offer, the appellant, M/s. Riya Travel & Tours (India) Pvt. Ltd. and M/s. Galileo India Pvt. Ltd. were to join hands in marketing and promotion of M/s. Galileo in India in exchange of a support fee. This offer....
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.... hon'ble apex Court in the case of Bhopal Sugar Industries Ltd vs Sales Tax Officer 1977 AIR 1275 /1977 SCR (3) 578. If one sees the substance of the agreement, it is for the promotion of the software of the CRS companies and not for any other purpose. 5.2 As regards the contention of the appellant that the services provided by them would come within the category of 'air travel agent's service', we do not find any merit in the contention. The 'air travel agent's service' is for service to the travellers or the airlines by booking tickets for which they receive a consideration from the airlines. The CRS software can be used not only for booking of air tickets but also for hotel booking, car rental and for other purpose....