2023 (9) TMI 74

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....ration with Operational office at 3GH, Hansalaya, Barakhamba Road, New Delhi-110001. M/s. Amadeus CRS is an advanced computerized reservation system which works as an interface between the CRS user and different service provider, viz., airlines, hotels, car rental company, rail road, tour operation or other supplier of other travel relates services included or accessible through the Amadeus system. Amadeus CRS provides the user information regarding schedule, fares, availability of air transport and other travel related services and through which reservation can be made and/or tickets issued. It therefore appears that the said incentive/commission has been given to M/s. Nitco by M/s. Amadeus in as much as M/s. Nitco use the CRS of M/s. Amad....

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....hand, the Ld.AR for the Revenue reiterated the findings of the impugned order. 5. Heard the parties, considered the submissions. 6. On careful consideration of the submissions made by both the sides, the issue to be decided by us is that whether the incentive/commission received by the appellant for using CRS developer is subject to service tax or not. 7. The said issue has been settled by the Larger Bench of this Tribunal in the case of Kafila Hospitality & Travels Pvt. Ltd. (supra), which has been followed by this Tribunal in the case of Asveen Air Travels (P) Ltd. (supra), wherein this Tribunal has observed as under:- "5. The issue that arises for consideration is whether the incentive received by the appellant for using the CRS Dev....

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....agents can also purchase airline tickets from the IATA agents for their customers (passengers). The passengers are the ultimate recipient of air travel services. 3. IATA agents are persons who have been authorized to sell airline tickets directly from the airlines to passengers/subagents. For sale of tickets, the IATA agents receive commission from the airlines. In addition to the said commission received for booking of airline tickets, the airlines also incentivize IATA agents by paying target-based incentives, which are linked to guaranteed booking of a minimum number of airline tickets. In certain cases, sub-agents also book airline tickets through IATA agents. In a situation where a sub-agent achieves a predetermined target of bookin....

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....ssion paid by CRS Companies to travel agents can be subjected to service tax under the category of 'business auxiliary service' by alleging that the travel agents are promoting and marketing the business of such companies. xx xx xx 58. Thus, by rendering of services connected to travel by air, a travel agent would render "air travel agent" services, which services cannot be said to be for 'promotion or marketing' for the airlines. (Q) Whether the air travel agent is promoting the business of CRS companies xx xx xx 71. This apart, the definition of BAS would also reveal that the service provider must promote or market the service of a client. As noticed above, it is not a case where the air travel agent is promoting the servic....