TaxTMI 
TaxTMI 
2017 (9) TMI 625
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....ansport of Passengers embarking in India for international journey by Air" in terms of Section 65(105)(zzzo) of Finance Act, 1994. The appellants were registered with the Service Tax Department and were paying service tax on their services. The dispute in the present appeals is with reference to valuation of the taxable service rendered by them. The Revenue, after scrutinizing the documents submitted by the appellant, entertained a view that the value for taxable service has not been properly calculated by the appellant. It was alleged that they have not included certain considerations, though part of air ticket charges, claiming that the said portion relates to passenger service fee (PSF) and airport taxes collected under an obligation wit....
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....he same to those concerned authorities. The considerations towards these fee and charges are not towards rendering of any service by the appellant. He further submitted that they have paid the collected PSF charges to Delhi International Airport Ltd. (DIAL). It was further submitted that though service tax is also part of such amount collected by the appellant from the passengers, the said amount has been remitted to DIAL on a regular basis in terms of the invoice raised and the DIAL paid service tax on PSF charges to the department. The ld. Counsel relied on the decision of the Tribunal in Jaipuria Infrastructure Developers Pvt. Ltd. - 2014 (36) STR 696 (Tribunal) to hold that the tax collected by one person can be deposited through anothe....
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....s correctly taxable under Section 67 of the Act. Any exclusion from that gross amount should be in terms of the said Section or Valuation Rules. The appellants could not point out under which authority, an exclusion can be made for a part of considerations from the gross value. The repeated submissions of the appellant that PSF and other airport charges are collected on behalf of somebody else alone are not sufficient to exclude them. The appellants have not only collected the PSF and also the service tax payable on such PSF. There is no authority to collect service tax from the service recipient on behalf of a third party. If the appellants are not liable to pay service tax on such value as they have claimed to have not rendered any servic....
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.... no difference on this account on the principle that such exclusion, if it is shown, in terms of documents and applicable statutory provisions are to be allowed. 7. We have perused the various documents submitted by the appellant in support of their defence in the present appeals. The appellants pleaded that the passenger service fee (PSF) is a statutory levy in terms of Section 22 of the Airport of India Act, 1994. We have perused the said decision. The same provides for Authority to charge fee, rent, etc. The Authority may with the previous approval of the Central Government charge fee or rent for providing various services in the airport. These services may be in the nature of landing, parking of aircrafts, air flight services, amenit....
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....ese details can be made by the jurisdictional officers. We are in agreement with the appellant that addition of PSF in the taxable value at the hands of the appellant may result in double taxation. Admittedly, the PSF is forming part of airport service in terms of Section 65(105)(zzm). The very same PSF cannot be subjected to service tax under transport of passenger service. 10. Regarding the submission of the Revenue that the appellant is collecting service tax along with PSF and such arrangement is not within the scope of Finance Act, 1994, we note that these aspects have not been alleged or adverted in the show cause notice or by the Original Authority while recording findings against the appellant. As contested by the appellant, the ....