TaxTMI 
TaxTMI 
2017 (11) TMI 1407
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....elating to their liability to pay service tax on Passenger Service Fees (PSF) and other taxes (international taxes) collected by the airlines as part of consideration when the tickets are issued to the passengers. 2. The learned Counsel appearing for all the appellants submitted that the includability or otherwise of these charges for tax liability under the category of "air travel service" under Section 65 (105) (zzo) has already been settled by the Tribunal in various decisions with reference to other airlines involved in similar disputes. He referred to these decisions in his support. During the course of hearing, the learned Counsel was specifically asked to submit all the supporting evidence and documents in order to ascertain whether the facts of the present appeals are similar to the one considered and decided by the Tribunal which were relied upon by the appellants. The learned Counsel submitted detailed write up in respect of each appeal alongwith supporting documents to establish that (a) PSF is a statutory levy as per Section 22 of Airport Authority Act, 1994 ; (b) PSF is fixed as per the order of Ministry of Civil Aviation ; (c) M/s DIAL op....
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....es not pertain to relevant period. Though the Ministry of Civil Aviation instructed that PSF shall be collected by respective Airport Authority, there is not mention of airlines collecting the same. The airlines, even if they act on instruction of Airport Authority, cannot collect service tax as there is no concept of 'pure agent' for tax collection. The decision of Hon'ble Supreme Court in Ajit Mills Ltd. (1997 - 4 - SCC - 98) is not relevant to the present case. The system of collection of tax on PSF being collected and passed on through Airport Authority for payment to Government is not sanctioned by any provisions of law. 5. We have heard both the sides and perused the appeal record. We note that on the issue of tax liability on the charges collected by the airlines as PSF and other taxes, the Tribunal had occasion to examine the same issue in respect of various international airlines. As rightly pointed out by the appellants that in the case of Continental Airlines order dated 02/07/2015 (2015 - TIOL - 1481 - CESTAT - DEL), Lufthansa Airlines, order dated 31/03/2016, KLM Royal Dutch Airlines order dated 04/08/2016, United Airlines order dated 06/12/2016 (2016 - TIOL - 2539 ....
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....e. This is apparently for the services rendered to the passengers in the airport. The passenger pay such charges as part of the ticket. The appellants pleads that they are not rendering any service towards such fee. 9. During the course of argument, the appellants have, inter alia, submitted documents like invoices issued to the appellant by the Airport Authority, certificates issued by the Airport Authority to the effect that service tax on PSF collected by the appellant stands paid to the Government by the Airport Authority, challans issued from Overseas Government Department evidencing payment of airport taxes to these departments. We note that admittedly, service tax on such passenger service fee has been claimed to have been duly remitted by the Airport Authority, which was collected from the passengers by the appellant. Verification of these 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....
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.... specify, and is also liable to pay for security component to any Security Agency designated by the Central Government for providing the security service. We find that the said tax has been collected by the appellant and same has been shown separately on the tickets. Therefore, the appellant has complied with the condition of Rule 6 of Service Tax (Determination of Value) Rules, 2006 and the same are not includable in the assessable value of service provided by the appellant, as the impugned period is, post 27/02/2010 and the said issue has been examined by this Tribunal in the appellant's own case wherein this Tribunal has made it clear that these charges are not to be included in the assessable value of the services provided by the appellant relying on the decision in the case of Continental Airlines vs. CST, New Delhi (supra). Moreover, as per the exemption Notification No. 12/2010 dated 12/02/2010, statutory taxes charged by any government on Air passengers would be excluded from the taxable value for the purpose of levy of tax and therefore, the service tax is not payable by the appellant". 8. In view of the consistent ratio followed by the Tribunal with reference to this d....