2007 (8) TMI 72

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....vel Agent. The commission received on the sale of air tickets is liable to service tax. The appellant had been discharging the tax liability also. Further, on account of cancellations, wherever tax already paid became not payable, the appellant was taking adjustments of the tax paid on such cancelled tickets, towards tax payable for subsequent periods. Under the impugned order, such adjustments re....

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....d that the air travel agents receives certain commission for domestic tickets and for international tickets from the airlines. The details of the commissions a payable by the air line is indicated in the agency agreement entered into between the air line and the air travel agent. The travel agent files a fortnightly return to the airlines indicating the details of tickets booked, the fare collecte....

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....he passenger service fee and the taxes. However, this aspect may be verified by the Commissioners and action taken accordingly. Cancellation or modification of tickets is a very common and frequent feature in air travel. The air travel agent in his fortnightly return gives the particulars of tickets cancelled or modified and adjusts the commission accordingly subject to final approval by the airl....