TaxTMI 
TaxTMI 
2024 (3) TMI 859
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....y the airlines to the appellants after retaining a portion of the same; the appellants to retained some portion and passed on the same to their customers. Revenue is of the opinion that the commission retained/earned by them is towards the service rendered by them to the co-GSA/IATA for the business auxiliary services provided by the appellants to co-GSA/IATA agents. A show cause notice has been issued and was confirmed by the order-in-Original dated 13.12.2012. Hence, the appeal. 2. Shri Sudhir Malhotra, Ld. counsel for the appellant submits that the appellants buy tickets from other GSA/IATA agents and sale to their customers in normal course of trade; they are not agents of other GSA/IATA agents; the other GSA/IATA agents pay service tax on their commission and a part of the commission to the appellant; the sale and purchase of goods/services are not chargeable to service tax. He submits that the issue is no longer res integra and decided by the Tribunal in the following cases: Om Air Travels Pvt. Ltd. 2019 (25) GSTL 460 (T) Trade Wings Ltd. Vs. Commissioner of Central Excise and Service Tax, 2017 (52) STR 149 (T) Akbar Travels of India Pvt. Ltd. Vs....
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....Auxiliary Services"; the impugned order has clearly established the principle and agent relationship; the amount earned on the sale/purchase of air tickets by the appellants on behalf of the agents other than airlines is not a trading activity but a provision of service of commission agent and is squarely covered by the explanation to sub-clause (vii) of the definition of business auxiliary service under Section 65 (19) of Finance Act, 1994 and as taxable under Section 65 (105)(zzb) ibid. Ld. authorized representative submits that it is incorrect to say that specific service was not mentioned under business auxiliary service; High Court of Delhi in the case of ITC Ltd. 2014 (36) STR 481 Delhi held that in examining a show cause notice, the object and purpose to inform the recipient of the allegations are to be taken care of; the same has been done in the show cause notice. They also submit that revenue neutrality is not a criteria to decide the taxability; the argument that the appellant need not pay service tax under business auxiliary service as the co-GSA/IATA agent has paid service tax under "Air Travel Agent Service" is not acceptable in view of the judgment in the case of Nor....
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.... discounted price and selling them to customer is a trading activity hence the trade margin will not be taxable. In the fact that the appellant is purchasing the ticket on discounted price and selling the same at higher price to the customer, the difference, in our view, is a trade margin during the process of sale and purchase of the tickets. Therefore, we do agree with the contention given by the Ld. Commissioner (Appeals). Accordingly, the demand raised on trade margin of purchase and sale of the tickets shall not be taxable. Hence the impugned order is upheld, Revenue"s appeal is dismissed." 9. Further, Tribunal observed in the case of Akbar Travels of India Pvt. Ltd. (Supra) that: "5. Learned Counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without considering the facts and the law. He further submitted that the impugned order is contrary to binding judicial pronouncements. He further submitted that the appellant is acting as an air-travel agent and when the customer comes for booking of passage by air, they purchase the tickets from the airlines and given to the customers and on the agency charges th....
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....ion. This is apart from the fact that the observations in paragraphs 10 and 11 of the BuxaDooars case were not approved by the Supreme Court in Goodricke Group Ltd. case, cited supra, was entirely different but, that is a different subject altogether. We have already held that Section 67(k) which provides the "measure of the tax" is not unconnected with the main levy of the tax for the reasons that we have already given above. 17. We have already shown here that the provision of Section 67(k) does not in any manner alter the nature of tax and does not shift it from the service rendered to the customer to the service rendered to the airlines. The contention, therefore, is clearly incorrect on facts. 18. The further argument that the notification dated 26-6-1997 restricts the tax to the commission alone is repugnant to the scheme of the tax is obviously incorrect for the reasons given by us. The basis of the argument that the commission received from the airlines by the air travel agent is taken a measure for imposing a levy on a different service rendered to the customer by the agent is itself incorrect. We, therefore, reject the argument that the impugned provisio....
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.... specific category available, the service would be classified under the specific category and not under general category. He further submitted that the Commissioner has not given any finding on the applicability of the said circular which is binding on him. 7. On the other hand Learned Authorized Representative appearing for Revenue reiterates the findings of the lower adjudicating authority and submits that since the appellant is getting commission from GSA, it is promoting the business of GSA and therefore, the services rendered is rightly classified under "business auxiliary service". 8. After considering the submission of both the sides and perusing the appeals records and various judgments relied upon by the appellant, we find that the services rendered by the appellant in booking of passage for travel by air which is squarely covered by the definition of "air travel agency service" as defined under Section 65(105). As per the said definition of "Air Travel Agent" means - "any person engaged in providing any service connected with the booking of passage for travel by air" and the taxable service means - "any service provided or to b....