TaxTMI 
TaxTMI 
2025 (9) TMI 2
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....-II), Bangalore. 2. The appellant is registered as a travel agency providing tourism related services and has paid service tax on the value consideration received for such services. In addition to rendering services to their own clients, the appellant also assists travel agents situated elsewhere in India to help their foreign clients for organizing tours, hotel bookings and transport arrangements for which consideration was received from the outstation travel agents. The Revenue contended that these services were also liable to service tax and hence, demanded service tax along with the interest on the amounts received from the outstation travel agents. Penalties under section 76, 77 and 78 of the Finance Act 1994 was also imposed. Aggri....
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....itted service tax on the entire value of the tour and hence, the appellant was asked not to discharge any service tax on the invoices raised by the appellant, hence the appellant did not collect the service tax nor discharged service tax. With regard to limitation, it is submitted that the appellant was regularly filing the returns and discharging service tax on the services rendered by them and the reimbursements received from their primary travel agents was duly reflected in the books of accounts, hence, the question of suppression or misdeclaration did not arise and therefore, the demand for the extended period of limitation cannot be sustained. It is also stated that in terms of Section 67 of the Finance Act, 1994, the gross amount rece....
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....tly invoked suppression and confirmed the demand for the extended period. 5. Heard both sides. The only issue to be decided is whether the appellant is liable to pay service tax on the amounts received from other travel agents for whose client's hotel bookings, transportation, etc., was being arranged and the same was reimbursed by the primary travel agents. The demand is for the period 2001-02 to 2005-06. 6. The tour operator prior to 10.09.2004 was defined as 'Tour Operator' means any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted, under the MV Act 1988 (59 of 1988) or the Rules made thereunder. 7. As per the amendment w.e.f. 10.09.2004, 'Tour Operator' under Section 65(115) of ....
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....f the Notification No.25/2004-ST dated 10.09.2004 since that exemption is for a person other than Tour Operator. It is an admitted fact that the appellant had discharged service tax on the services rendered by him as a Tour Operator for his own clients and therefore, he cannot be considered as only a booking agent for organizing tours to the clients of other travel agents. The worksheets placed on record by the appellant also mention has 'Tour Operator Services'. 10. We find that the Appellant has placed on record various letters received by the other travel agents which states that no service tax levied, since at their end service tax is being discharged. Letters are reproduced below: The above letters clearly shows that the appellan....
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....ions and considering the fact that already an amount of Rs.9,29,565/- has been paid and appropriated, the question of penalty needs to be revisited. 13. Appeal is disposed of accordingly by way of remand to the Original Authority. (Order pronounced in Open Court on 28.08.2025.) ============= Document 1 165 185 Creative Travel Pvt. Ltd. 27-30, CREATIVE PLAZA NANAK PURA, MOTI BAGH,NEW DELHI-110 021 (INDIA) Tel. : 4679192. 6872257-58-59 TIK. : 031-72147. 031-72215 CT-IN, CABLE : Leisure Fax :(91-11) 6005086, (01-11) 6889764 Email:[email protected] 15th Oct.1997. CT/97-98 TO ALL THE AGENTS : This is to inform you that we have registered ourself with Commissioners of Central Execise an....