2018 (5) TMI 1418

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....or the Appellant Shr K. Veerabhadra Reddy, JC (AR) for the Respondent ORDER Per Bench The issue for consideration in this appeal is (a) whether the appellants are liable to pay service tax on the incentive received for use of AMADEUS systems (b) whether the appellants are liable to pay service tax on the remuneration / commission received from insurance companies (c) whether the appellants are....

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....while booking international air tickets for foreign clients. They have not paid service tax on their commission received from the insurance companies, for the reason that they believed that such commission would be taxable only if the person is engaged as an insurance agent. She pleaded that the penalty therefore may be set aside. 2.2 With regard to third issue, she submitted that the appellant d....

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....owing the same, we find that the appellant is liable to pay service tax. However, taking note of the fact that the said issue was under litigation before Tribunal, the appellant was under bonafide belief that they are not liable to pay service tax. Taking note of this fact as well as following the decision in the case cited supra, we are of the view that the penalties imposed cannot sustain and re....

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....nt on common inputs. Under Rule 6(3)(c) of CENVAT Credit Rules, 2004, appellants being provider of output service ought to have utilized only 20% of the credit availed on common input services. The appellant having availed credit both on taxable as well as non-taxable services are not eligible to utilize the credit exceeding 20% of the amount of service tax payable on taxable output service. The a....