2018 (7) TMI 1391

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....ts in India which is registered with Service Tax Department. The Head Office of the appellant entered into a contractual, agreement with M/s Amadeus, Abacus, Galileo, for provision of Centralized Reservation System (CRS) for Airline Travel. The dispute in the present case is with reference to tax liability of the appellant's office in India for such services received by them under the category of 'Online Information and Data Base Access Retrieval Service'. The Revenue contended that the appellant herein received such service from foreign based CRS Companies, under the category of 'Computer Network Services' in terms of Section 65 (105) (zh) of the Finance Act 1994. The period of dispute is from October, 2006 to June, 2012. The demand was ra....

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....hments, and hence the liability for Service Tax does not arise on the Indian office. 6. The Ld. DR brought to our notice the findings of the Adjudicating Authority in para 26 of the impugned order. He highlighted the fact that the Head Office of the appellant has been debiting the Indian Office of the appellant for the consideration equivalent to the amount paid by the Head Office to the CRS Service Provider. On this ground, he submitted that the user of the service is the appellant in India and the consideration for such service has been paid by the Indian office and hence he justified the levy of Service Tax on the appellant. 7. Opposing the arguments of Ld. DR, Ld. Advocate submitted that the Service provider and Service receiver r....

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....et aside in all the cited decisions. The view taken by the Tribunal was that the agreement with the CRS Companies was made by the Head Office of the Foreign Airlines. The consideration as per such agreement was also paid by the Head Office to the CRS Companies. Since the Head Office and Branch Office in India of the Foreign Airlines have to be considered as distinct persons in terms of Section 66A, Tribunal has held that the Service Tax liability on Reverse Charge Basis does not accrue to the Indian Arm of the Foreign Airlines. 11. The decisions of the Tribunal on the above lines have been sought to be distinguished by the Ld. DR. He has brought to the notice the findings of the Adjudicating Authority in para 26 of the impugned order whe....