2017 (11) TMI 354

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....heads Fuel Surcharge (YQ Tax), Passenger Service Fee (PSF), GDS cost collected (YR), Service Tax collected (JN tax) and Other Taxes (various codes). Department initiated proceedings against the appellant on the plea that service tax liability would arise on these additional heads collected from the passengers also. Two SCNs dt. 14.05.2008 and 23.04.2009, were issued to the appellant inter alia, proposing recovery of demand of differential service tax liability amount of Rs. 81,03,180/- and Rs. 6,82,128/- with interest liability thereon and imposition of penalties under various provisions of law. Prior to the issue of SCNs, appellants paid up an amount of Rs. 36,30,765/- along with interest on service tax liability arising on the "Fuel Surch....

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....r service fees collected from the airline by various airports around the world; however in regard to these charges also, they do not contest and have paid the tax liability and interest thereon. (iv) The issue of taxability on these elements in an air ticket was mired in confusion during the relevant period and as is evident from the number of decisions cited by him. For this reason, Ld. Advocate submits that there cannot be any penalty imposable on their failure to pay the tax liability wherever conceded. 4. On the other hand, Ld. A.R. Shri B. Balamurugan supports the impugned order. He points out that there is no confirmation thereof arising from the SCNs or the impugned order that the appellants have paid the tax liability in respec....