2022 (4) TMI 1035

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....ent, it was found that the appellant had received incentives / commission from CRS Developers (Centralized Reservation System) namely M/s. Galileo India Pvt. Ltd., M/s. Abacus Distribution System (India) Pvt. Ltd., M/s. Amadeus India Pvt. Ltd. for booking of tickets through the computerized reservation booking system offered by the said companies. The department was of the view that the said incentive received is subject to service tax under the category of 'business auxiliary service'. Show Cause Notice was issued proposing to demand service tax for the period from November 2003 to March 2008 along with interest and also for imposing penalty. After due process of law, the original authority confirmed the demand, interest and imposed penalt....

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.... to customers/sub-agents in the form of airline tickets. CRS Companies provide an online portal for booking of tickets offered by various airlines. They enter into agreements with airlines for rendering 'Online Information Data Access and Retrieval' [OIDAR] services, wherein they collate data such as ticket availability, price, duration of journey, etc., for access by subscribers. CRS Companies also enter into subscriber agreements with IATA agents wherein the IATA Agents are permitted to use the data base available on the portal for booking of airline tickets for passengers/sub-agents. Subagents can also purchase airline tickets from the IATA agents for their customers (passengers). The passengers are the ultimate recipient of air travel s....

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....termed as 'CRS commission'. The three CRS Companies involved are Amadeus India Private Limited [Amadeus], Interglobe Technology Quotient Pvt. Ltd. [Galileo] and Abacus India [Abacus]. ***** ****** ****** ****** 41. On a consideration of the entire matter it transpires that the following two main issues arise for determination :- (Q) Whether service tax can be levied under the category of 'business auxiliary service' on target based incentives paid to the travel agents by airlines by alleging that the travel agents are promoting and marketing the business of the airlines; and (Q) Whether the commission paid by CRS Companies to travel agents can be subjected to service tax under the category of  'business auxiliary service' by all....