2018 (4) TMI 837

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....ax department under the category of "Transport of Passengers for international Journey by Air " Service, in terms of Section 65 (105 ) (zzzo) read with 65(3 b ), 65(3 c ), 65(35a), 65(56a) and 65(77c) of the Finance Act, 1994. During scrutiny of the records of the appellant, it was observed by the officers of service tax department that the appellant had collected total fare from the passengers, comprising of basic fare, fuel surcharge (YQ/YR) passenger service, administration fee and airport tax es , but deposited service tax on base fare and YQ/YR charges only. Accordingly, the department initiated show cause proceedings against the appellant, seeking confirmation of service tax demand for non included Passenger Service Fee (PSF) and Exce....

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.... used by passengers' after, 1.5.2006, the ld. Sr. Advocate submitted that the show cause proceedings are barred by limitation of time, having been initiated beyond the normal period provided under the statute. In support of the limitation aspect, the ld. Advocate has relied on the decision of this Tribunal in the case of National Aviation Co. of India Ltd. Vs. CST, Mumbai - 2015 - TIOL - 1684 - CESTAT - MUM. 3. On the other hand, Sh. Sanjay Jain, the ld. DR appearing for the Revenue reiterated the findings recorded in the impugned order. 4. Heard both sides and examined the case records. 5. As a service provider, the appellant is liable to pay service tax, on the taxable value of service received from the passenger for international jour....

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....the main service and cannot be separately taxed under any other heads of service. The relevant paragraphs in the said decision are extracted herein below: "10. On careful consideration of the submissions made by the parties, the core issue emerges is whether the service tax payable on excess baggage charges paid by the passengers at the time of boarding the aircraft. 11. To answer this issue, the question arises in the mind is whether the excess baggage charges can be demanded without transportation of passengers by air or not. The answer to this question is obviously 'no', because when the passenger is travelling by air and his baggage is excess than the permitted limit, then he has to pay the excess baggage charges. In these circumsta....

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....acteristic of the service of transportation of passenger by air. In these circumstances, we do agree with the contention of the learned counsel for the appellants that the excess baggage charges are nothing but an integral part of the service of transport of passenger by air. 14. We have also seen that the appellant is paying service tax under the category of transportation of passengers by air which are fixed per passenger during the impugned periods. Therefore, the appellants are not required to pay an y service tax on excess baggage charges during the impugned period as the excess baggage charges is an integral part of the main service provided by the appellants, namely transportation of passenger by air." 7. We also find that the civ....