2023 (5) TMI 566

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....the Appellant has issued Credit Notes and the same were being adjusted in their monthly Service Tax payments of the Department. 2. A Show Cause Notice was issued demanding Service Tax of Rs.3,89,967/-. After due process, the Lower Authorities confirmed the demand along with interest and penalty. Being agitated by the impugned OIO, the Appellant is before the Tribunal. 3. The Learned Consultant appearing on behalf of the Appellant submits that Department had issued Trade Notice No. 6/97-ST dated 1/7/1997 wherein it is clarified that cancellation of Air tickets is very common practice. Accordingly, it is clarified that if credit notes are issued on amount of cancellations, the Service Tax already paid can be adjusted in the further paym....

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....r particulars. After adjusting the commission, he remits the balance amount to the air lines. This fortnightly return could be made the basis for assessment of service tax in respect of air travel agents. However, an option is also being provided to the air travel agent to pay the service tax at the rate of 0.25% of the basic fare in the case of domestic tickets and 0.5% of the basic fare in the case of international tickets towards discharge of his service tax liability instead of paying tax at the rate of 5% on the actual commission received from the air lines. (Notification No. 20/97-S.T. refers). Basic fare is defined as that part of  the fare on which commission is payable by the air lines. It is reported that this normal....