2019 (1) TMI 1172
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....ax department under the category of Goods Transport Agency service, Business Auxiliary service and Transport of passenger by air service. The department was of the view that the appellants were not paying service tax on the gross amount received by them from their customers under the category of transport of passenger by air service. On the basis of details submitted by the appellant, it was noticed by the department that they were collecting the airfare from the passengers under the following heads:- (i) Basic fare; (ii) Fuel surcharges; (iii) Administrative charges; (iv) Passenger service fee; and (v) Airport taxes. However, it was found that the appellants were paying service tax only on the amount received on account of basic fare....
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....ESTAT - DEL.) and Austrian Airlines order dated 21/07/2017 the Tribunal held against the inclusion of these charges in the taxable value for air travel service by the appellants. The Tribunal in the case of Austrian Airlines observed as below :- "6. The issue is relating to tax liability of certain part of considerations received by the appellant while selling tickets to the passenger for air travel by the airlines of the appellant company. The claim of the appellant is that the amount collected, as PSF and airport taxes are not towards considerations of air travel and hence are not liable to be taxed. First of all, we have considered the various relied upon cases as decided by the Tribunal on the same issue. We note that the Tribunal in....
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....s the passengers enter and passes through the airports. 8. The Airport Authority fixed certain charges as passenger service fee. This is apparently for the services rendered to the passengers in the airport. The passenger pay such charges as part of the ticket. The appellants pleads that they are not rendering any service towards such fee. 9. During the course of argument, the appellants have, inter alia, submitted documents like invoices issued to the appellant by the Airport Authority, certificates issued by the Airport Authority to the effect that service tax on PSF collected by the appellant stands paid to the Government by the Airport Authority, challans issued from Overseas Government Department evidencing payment of airport tax....