TaxTMI 
TaxTMI 
2015 (1) TMI 387
X X X X Extracts X X X X
X X X X Extracts X X X X
....(IATA))' and Service Tax Registration No. AAA CD385 3FST001 with the Service Tax Commissionerate, Delhi under the category of Air Travel Agent Service. He is engaged in providing air tickets to the clients both as an IATA agent and also by way of purchasing tickets from other IATA Agents on principal to principal basis. The Appellant as Air Travel Agent is required to pay service tax on the amount of gross commission received from the Airlines. However, under Rule 6(7) of the Service Tax Rules, 1994, there is an option for him to pay service tax @ 0.6% of the basic fare in case of domestic bookings and - @ 1.2% of the basic fare in case of international bookings. In terms of the explanation to Rule 6(7) of the Service Tax Rules, 1994, for t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... proviso to Section 73(1) of the Finance Act, 1994 along with interest thereon under Section 75 ibid; (b) recovery of cenvat credit amounting to Rs. 1,40,735/- under Rule 14 of the Cenvat Credit Rules, 2004 read with proviso to Section 73(1) of the Finance Act, 1994 along with interest on it under Section 75 ibid; and (c) imposition of penalty on the appellant under Section 76, 77 and 78 of the Finance Act, 1994 and also under Rule 15 (2) of the Cenvat Credit Rules, 2004. 1.3. The above show cause notice was adjudicated by the Commissioner vide order-in-original dated 20.05.2013 by which - he confirmed the service tax demand of Rs. 3,44,48,113/- along with interest, but dropped the cenvat credit demand of Rs. 1,40,735/-. He also imposed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lear that the service tax at the rate specified in sub-rule is not chargeable on the gross basic fare but is chargeable only on that part of the basic fare, on which the commission is normally payable to the Air Travel Agent, that the appellant have evidence to show that the appellant have paid service tax under Rule 6(7) only on that portion of the fare on which the commission was being paid to them by the Airlines, that they have never received commission on the fuel surcharge part of the fare, that the appellant had provided copies of the 'IATA BSP Agent billing statement' for the billing period 16.12.2008 to 31.12.2008 to the Audit Team and had explained the manner in which the billing is done, that this statement shows that most of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of the airfare on which the commission was being received by them, as if this had been done, there would not have been such a big difference between the service tax liability determined on the basis of the gross commission and the service tax liability determined under Rule 6(7) of the Service Tax Rules. 6. We have considered the submissions from both the sides and perused the records. 7. The appellant as IATA Agent have two options to discharge service tax liability. The first option is to pay service tax on the gross amount of commission received. However, Rule 6(7) provides another option to them to pay service tax @ 0.6% of the basic fare in respect of domestic bookings and @ 1.2% of the basic fare in respect of the international bo....