TaxTMI 
TaxTMI 
2018 (12) TMI 788
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....e passengers under 5 heads namely :- basic fare, fuel surcharge, insurance surcharge, Passenger Service Fee (PSF) and airport taxes, however, the service tax has been discharged by the appellant only on the three heads namely :- basic fare, fuel surcharges and insurance surcharge and service tax has not been discharged on the amount of PSF and airport taxes collected by the appellant from its passengers. The learned Commissioner has confirmed service tax demand of Rs. 1,13,86,734/- vide its order-in-original No. DLI/SVTAX/003/ COM/43/15-16 dated 02/03/2016, the interest and penalty have also been confirmed as per provision of the law. It has been the contention of the learned Advocate appearing on behalf of the appellant that all airlines a....
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....- 2017 (51) S.T.R. 192 (T) ; (vii) Austrian Airlines vs. Commissioner of Service Tax - 2017 (7) G.S.T.L. 379 (T) ; and (viii) Lufthansa German Airlines vs. Commissioner of Service Tax - 2018 (17) G.S.T.L. 241 (T). 4. The relevant extract of the decision in the case of Lufthansa German Airlines (supra) is given here below :- "6. Heard both sides and considered the submissions. We find that the short issue involved in the matter is that, whether PSF and Airport charges collected by the appellant are to be included in the service provided by them under the category of Transportation of Passengers by Air services or not. Ld. AR has heavily relied on the decision in the case of Air Canada v. CST, New Delhi (supra). We find that in the cas....
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....ase, we are not dealing with any expenditure or cost incurred by the appellant in providing any service. Their claim is that these amounts (PSF and Airport taxes) are collected on behalf of the Airport Authority. In the absence of supporting evidence and also the crucial fact that the same is transmitted on actual basis without any mark up/tax element involved, has not been established in the present case. Here, we also note that the Tribunal in Continental Airlines Inc - 2015-TIOL-1481-CESTAT-DEL and a few other cases held that PSF and airport taxes are not includible in the taxable value of airlines. It was recorded that these charges were collected by the airlines on behalf of airports and were paid to them and, therefore, are not includ....
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....able to pay for security component to any Security Agency designated by the Central Government for providing the security service. We find that the said tax has been collected by the appellant and same has been shown separately on the tickets. Therefore, the appellant has complied with the condition of Rule 6 of Service Tax (Determination of Value) Rules, 2006 and the same are not includible in the assessable value of service provided by the appellant, as the impugned period is, post 27-2-2010 and the said issue has been examined by this Tribunal in the appellant's own case wherein this Tribunal has made it clear that these charges are not to be included in the assessable value of the services provided by the appellant relying on the decisi....