2018 (5) TMI 1472

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....Shri S. Muthuvenkataraman, Advocate for the Appellant Shri K. Veerabhadra Reddy, JC (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants are IATA Air Travel Agent and are registered with the Service Tax Department under Air Travel Agent Service. (a) It was noticed that they received incentive / commission from insurance companies for arranging overseas mediclaim policy f....

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....est and penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, Shri S. Muthuvenkataraman, ld. counsel submitted that the commission received from TATA AIG Insurance cannot be classified as BAS. At the most it would fall under insurance auxiliary service. The Board vide circular 59/8/2003-ST dated 20.6.2003 clarified that since the insurance....

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....r and therefore the levy of service tax of such charges under the category of tour operator cannot sustain. The appellant was only engaged in booking air tickets for the clients. On the issue of income received from airlines on the cancellation of tickets, he submitted that the issue stands covered by the decision in the case of Janta Travels (P) Ltd. - 2009 (13) ELT 488 (P&H) as well as CCE Vs. S....

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.... the argument raised by the appellant in this ground cannot sustain for the simple reason that the said commission would be promotion of business of the insurance companies and therefore would rightly fall under BAS. However, taking into consideration that the appellant had bonafide belief that as per Board clarification, they would not be liable to pay and the same would be subject to levy only u....