TaxTMI 
TaxTMI 
2019 (9) TMI 1498
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....espondent], is a 'tour operator' providing services like transportation, entry to monuments and joyrides etc. to the main tour operator in relation to a 'package tour'. It availed the benefit of abatement of Service Tax of 75% of the amount charged in gross receipts as per the Exemption Notification No. 01/2006 dated 01 March, 2006 as amended by Notification No. 38/2007 dated 23 August, 2007. An audit was conducted on the Respondent for the period of October, 2007 - March, 2010. The Department alleged that the Respondent did not provide the whole 'tour package' as defined in the Explanation to the Notification and thus would not qualify for 75% abatement stipulated at Sl. No. 2(n)(i) of the Notification. According to the Department, the Respondent fell at Entry 2(n)(iii) of the Notification, which covers 'services other than the services in (i) and (ii) provided by a tour operator in relation to a tour' and so that the Respondent was eligible to avail an abatement of 60% only. 3. Consequently, a show cause notice dated 19 March, 2013 was issued to the Respondent regarding non-payment of Service Tax amounting to Rs. 22,62,511/- and also proposing a penalty under sections 76 and 78 ....
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....ation dated 01 March, 2006 as amended by Notification dated 23 August, 2007. In this connection, learned Authorised Representative submitted that the two ingredients i.e accommodation charges and food charges were absent in the services provided by the Respondent, as would be clear from the invoices/bills issued by the Respondent and, therefore, as all the services mentioned at Sl. No. 2(n)(i) of the Notification were not provided by the Respondent, the abatement provided under Sl. No. 2(n)(i) would not be available to the Respondent and the Respondent would be entitled to the abatement as provided for under Sl. No. 2(n)(iii). He, therefore, submitted that the Commissioner (Appeals) committed a mistake in holding that the abatement provided for at Sl. No. 2(n)(i) would be available to the Respondent even if some of the services mentioned therein were provided by the Respondent. 7. Shri Rahul Lakhwani, learned Counsel for the Respondent, however, submitted that from a plain reading of the entry at Sl. No. 2(n)(i) of the Notification, it would be clear that there is no requirement that a service provider must provide all the services contemplated therein and even if some of the serv....
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....xplanation - The expression "package tour" means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour. The bill issued for this purpose indicates that it is inclusive of charges for such a tour. 25 (ii) Services provided or to be provided to any person, by a tour operator in relation to a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour. (a) The invoice, bill or challan issued indicates that it is towards charges for such accommodation, and (b) this exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation. 10 (iii) Services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relatio....
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.... the appellants are engaged in providing the part of the services of package tour therefore the same is also the part of package tour. In the said explanation there is nothing mentioned that whole of the services are required to be provided by the one person but the word in relation to the package tour mentioned. The word in relation having vide scope to cover all the services which are provided in relation to the package tour which can be one service or multiple services. In the appellants' case it is found that the appellants have provided multiple services i.e local transportation, joy rides, entry to monuments, guide fees, assistance etc. which are the part of package tour, therefore, the said services qualify in relation to the package tour and accordingly covered under Sr. No. 2(n)(i) of the said notification. In the explanation there is nothing that the complete tour package are required to be provided. In the contrary, it is mentioned that if the tour operator provided as part of the package tour to the person undertaking the tour, the same qualify as package tour. In this case, the appellants are engaged in providing the part of the services to main tour operation in relat....