2023 (9) TMI 78

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....the Finance Act, 1994 which defines tour operator service as: "tour operator means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made thereunder." The appellant is registered as tour operator and providing services to general customers and general companies and organizing tour package for both inbound and outbound tours. 1.2 ....

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....tbound tour services rendered by them for the same period, along with appropriate rate of interest under Section 75 and penalty under Section 76 of the Finance Act, 1994. 3. After due process, it appears that vide Order-in- Original No. 74/2013 dated 30.05.2013, the demands proposed in the Show Cause Notice came to be confirmed, against which it appears that the appellant preferred an appeal before the Commissioner (Appeals). 4.1. During the appellate proceedings, it appears that the appellant filed its written submission stating that insofar as domestic travel was concerned, they had paid the Service Tax on the margin earned by them on sale of air tickets. On merits, they appear to have contended that they were trading air tickets bought....

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.... issue whether the margin earned on the cost of air/rail tickets booked for the clients was taxable under tour operator service with regard to domestic as well as outbound tours. After considering the definition of tour operator service, the first appellate authority vide impugned Order-in-Appeal No. 361/2013 (M-ST) dated 20.11.2013 has allowed the appeal partly, thereby holding that the booking of tickets for outbound tours which was used outside India was exempt from the payment of Service Tax as the same amounted to export of service, has, however, partly confirmed the demand insofar as the booking of tickets in respect of domestic travel was concerned, but restricted the liability only to the extent of mark-up or the margin earned. It i....