2018 (12) TMI 955

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....AL MEMBER Mr. S. Loknath, CA For the Appellant Dr. J. Harish, Dy. Commissioner (AR) For the Respondent ORDER Per: P. ANJANI KUMAR The appellants are registered under the category of Tour Operator. The department conducted audit and found that the appellants were rendering services ranging from making tour itinerary and booking hotel accommodation. The appellants received certain com....

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....sends some amount and as such, they are not working as agents of the hotel. The payment is out of the room rentals paid by the customers. The amount is already charged to luxury tax. The activity undertaken by them does not come under Promotion or Marketing, going by the definitions of Promotion and Marketing given in Webster's Dictionary. He also submitted that two show-cause notices were issued,....

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....on behalf of the client; or 7. A service incidental or auxiliary to any activity specified in sub clauses 1 to 6 such as billing, issue or collection or recovery of cheques, payment, maintenance of accounts and remittances, inventory management valuation or development of prospective customer or vendor, public relation services, management or supervision. And includes services as a commissio....

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....lants case that the hotels are paying them a discount or commission ex gratia. We find that the original adjudicating authority has correctly found that "the amount received by the appellants is monetary benefit in turn to the service rendered, by giving lead to their guests or clients to various hotels". We do not find that the definition of Promotion and Marketing submitted by the appellants rel....