2013 (7) TMI 911

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....ission from IATA Agent, is rendering services under the category of 'Business Auxiliary Services' or under the category of 'Air Travel Agent'. The learned Commissioner came to the conclusion that the sub-agent is rendering the service classifiable under 'Air Travel Agent Services' and not under 'Business Auxiliary Services'. Accordingly, he set aside the order of the adjudicating authority dated 17.2.2006, wherein the classification was done under 'Business Auxiliary Services'. Aggrieved of the said decision, the Revenue is in appeal before us. 3. The learned Commissioner (AR) appearing for the Revenue submits that sub-agent books the ticket and gets the commission towards the same from the IATA Agent, he is promoting the business of the I....

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....he customers and not to the Airlines. In the present case also, the same logic would apply and, therefore, the services rendered by the sub-agent are to the customers and, therefore, the same would merits classification under 'Air Travel Agent Services' as defined in law. Therefore, the impugned order is correct in law and sustainable. Accordingly, it is pleaded that the Revenues appeal has no merits and should be dismissed. 5. We have carefully considered the submissions made by both the sides. 5.1 As per section 65(4) of the Finance Act, 1994 'Air Travel Agent' means 'any person engaged in providing any service connected with the booking of passage for travel by air', and the taxable service is defined under Section 65(105)(l) as 'any....

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.... or supervision, and includes services as a commission agent, but does not include any information technology service and any activity that amounts to 'manufacture' within the meaning of clause (f) of section2 of the Central Excise Act, 1944 (1 of 1944).   Explanation  For the removal of doubts, it is hereby declared that for the purposes of this clause,   (a) 'commission agent' means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person - (i) deals with goods or services or documents of title to such goods or services; or (ii) collects payment of sale price of s....

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.... the main subject of tax. Therefore, we hold that the observations in Buxa Dooars case, cited supra, in paragraph 11 which have been quoted by us would not be applicable to the present situation. This is apart from the fact that the observations in paragraphs 10 and 11 of the Buxa Dooars case were not approved by the Supreme Court in Goodricke Group Ltd. case, cited supra, was entirely different but, that is a different subject altogether. We have already held that Section 67(k) which provides the measure of the tax is not unconnected with the main levy of the tax for the reasons that we have already given above. 17. We have already shown here that the provision of Section 67(k) does not in any manner alter the nature of tax and does no....