TaxTMI 
TaxTMI 
2018 (2) TMI 82
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the appellant under business auxiliary service. The Commissioner confirmed the demand of service tax of ` 86,32,333/- for the period 2004-05 to 2011 along with interest thereon and also imposed penalties under various provisions of Finance Act, 1994 against the appellant M/s Akbar Travels of India Pvt Ltd. Since the issue involved in both the appeals are identical, therefore, both the appeals are being disposed off by this common order. 2. Briefly, the facts of the case are that the appellant is engaged in rendering of services as air travel agent and registered under the category of air travel agent services . The appellant received commission from General Sales Agent (GSA) on account of sale of air tickets by GSAs of certain airline....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(105) (zzb) under section 65 of the Act, read with section 66. The appellant contested the demand by filing the reply to the show cause notice alleging that the services provided by the appellant are taxable under air travel agency services the services shall be exempted under notification 22/1997. Further, the commission value has already been suffered service tax and the same cannot be taxed twice. Further that, they are not taxable services when tickets are issued by the branches of the appellant. 3. After considering the submissions, the adjudicating authority confirmed the demand along with interest and also imposed penalty under various provisions. Hence the present appeals. 4. Heard both the sides and perused the records. 5.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ary service does not arise. In support of this submission he relied upon the decision of this Tribunal in the case of Commissioner of Central Excise, Goa v. Zuari Travel Corporation [Appeal No. ST/309/2006 Order No. A/1716/13/CSTB] wherein on identical facts, the Division Bench of this Tribunal has held "5.3 In the case of Airlines Agents Association (supra), a question arose before the Hon'ble High Court of Madras was as to whether the services rendered by GSA/IATA agent is the services rendered to the Airlines or is it the services rendered to a customer and the Hon'ble High Court held as follows: - "16. In our opinion, the observations made in Buxa Dooars Tea Co. Ltd. case, cited supra, and more particularly tho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he tax is obviously incorrect for the reasons given by us. The basis of the argument that the commission received from the airlines by the air travel agent is taken a measure for imposing a levy on a different service rendered to the customer by the agent is itself incorrect. We, therefore, reject the argument that the impugned provision of Section 67(k) is repugnant to the general scheme of the Act and, therefore, it should fail or that there is anything repugnant in that provisions and the definition clause as also Section 67(k) which is a charging provision." 5.4 In our considered view, the question before us is also identical. The activity undertaken by respondent herein, who is a sub-agent of the IATA agent comes under Air Tra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax, Deli 2010 (10) TMI 505-CESTAT NEW DELHI wherein also the Tribunal has held that demand on service tax under the category of business auxiliary service cannot be sustained and the same was set aside. Further, he also submitted that the classification shall be preferred under the specific category rather than the general category. He also referred to the Circular issued by the Board vide Circular No 59/8/2003-ST dated 20/06/2003 wherein it has been clarified that if there is specific category available, the service would be classified under the specific category and not under general category. He further submitted that the Commissioner has not given any finding on the applicability of the said circular which is binding on him. 7. On th....