2017 (10) TMI 505

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....ers and is registered with the Department under the category of Air Travel Agents Services. For efficient conduct of business, the appellant is using Central Reservation Systems (CRS) software of M/s. Amadeus India Pvt. Ltd. By using such software, the appellant arranges international air ticket booking for customers. The appellant is receiving commission from M/s. Amadeus India Pvt. Ltd. Revenue is of the view that such commission received is chargeable to Service Tax under the category of Business Auxiliary services as the appellant is promoting the business of M/s. Amadeus India Pvt. Ltd. 2. The appellant is also receiving commission from International Air Tickets Association (IATA) on booking of tickets for their clients. While selli....

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....l agents; (iv) However, the relationship of the Appellant with M/s. Amadeus is of a client who purchases the products of the company; as such there can be no promotion activity either directly or indirectly by the client. No promotional activity under 'Business Auxiliary Services' gets attracted in the absence of three parties; (iv) The incentives so received did not amount to any kind of commission for alleged promotional activity, but was an incentive / rewards provided by M/s Amadeus for usage of their software so as to persuade the users to increase its usage in the provision ticketing services. (b) On payment of service tax on commission received from other IATA agents, they submitted : (i) At the outset, the sale and purch....

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....r IATA agents. 10. The submission of the appellant is that they are purchasing the tickets from IATA agents on principal to principal basis and therefore, the commission received falls under the category of Business Auxiliary services. It has further been submitted that the Travel agent who sold the tickets has already paid the service tax under the category of air travel agents. The services rendered by the appellant, as sub-agent of IATA agent is also falling under air travel agency services. Since the commission has already suffered service tax in the hands of principal IATA agent, it has been argued by the appellant that no service tax is liable to be paid. 11. Revenue has sought to levy the service tax on the commission received ....