TaxTMI 
TaxTMI 
2026 (3) TMI 650
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....assport, hotel booking, travel medical insurance. For such services, the Appellant received commission from IATA agents, Hotel agents, and insurance company. In addition, the Appellant also collected service charges from their clients in respect of assistance in booking, flight tickets and assistance in Visa and passport. The commission received against air tickets is reflected in the overall invoice raised by the IATA agent under the heading discount and handling charges and the same is paid via cheque on a fortnightly basis. The flight tickets booked from IATA agents contains the service tax portion on the invoice, which is ultimately reimbursed by the client. 2.1. An investigation was initiated against the Appellant by the officers of SIV Branch, Service Tax Commissionerate, Kolkata. On completion of the investigation, a Show Cause cum Demand Notice having C No. V(15)303/St-Adjn/ADC/13/26873 dated 22.10.2013 was issued to the Appellant alleging short payment service tax to the extent of Rs. 12,94,564 (including cess). The notice also demanded interest under section 75 and proposed penalty under section 78 of the Finance Act, 1994. The SCN also alleged that excess service tax ....
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....roviding business auxiliary service and as a specific head of air travel agent service provider exists, the activity of the Appellant cannot be classified as business auxiliary service. It is submitted that the above view has been settled in the decisions cited hereunder: a) Akbar Travels of India Pvt Ltd v. Commissioner of Service Tax, Mumbai-I [2018 (2) TMI 82 - CESTAT MUMBAI, 2019 (22) G.S.T.L. 427 (Tri. - Mumbai)]; b) Commissioner of Central Excise, Goa v. M/s Zuari Travel Corporation [2013 (7) TMI 911 - CESTAT MUMBAI]; c) M/s TSC Travel Services Pvt. Ltd.v. Commissioner of Central Excise and Service Tax, Ludhiana [2024 (3)TMI 859 - CESTAT CHANDIGARH]; d) Trinity Air Travel & Tours Pvt. Ltd. V. Commissioner of CGST & Central Excise, MumbaiEast [2024 (7) TMI 11 - CESTAT MUMBAI] 3.2. In view of the submissions, the appellant submits that the liability of service tax confirmed under the category of business auxiliary service cannot sustain. Allegation of excess collection of service tax is erroneous. 4. The appellant submits that allegation has been made in the show cause notice and subsequently upheld in the impugned order that excess ....
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....tc. from the customers. Such charges do not specifically fall under any of the headings under service tax law. It is submitted that the above said activities such Visa processing charges, passport processing charges are not in the nature of 'service connected with booking of passage for travel'. The said activities does not fall within the four corners of the definition of travel agent service as alleged by the department and therefore, the liability cannot be sustained. 7. The Appellant submits that the demand confirmed is not sustainable on the ground of limitation also. Since the category / classification of service itself is disputed, the allegation of suppression does not stand in the eye of law. When all the details have been arrived at from the books of accounts of the Appellant, suppression with the intention to evade payment of service tax cannot be sustained. Accordingly, the appellant submits that the demands confirmed in the impugned order is liable to be set aside on the ground of limitation also. On the same ground, no penalty imposable on the appellant. 8. In view of the above submissions, the appellant prayed for setting aside the demands of service tax along ....
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.... includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods. 11.2. We observe that the appellant were only providing the services in the nature of air travel agent for the end user. They were not conducting any promotional or marketing activity in respect of the IATA agents or the airlines. We observe that the activities undertaken by the appellant would not fall under any of the seven categories of service mentioned in the definition of 'business auxiliary service'. Accordingly, we hold that the services rendered by the appellant cannot be categorized under 'business auxiliary service'. It is on record that the Appellant are IATA agents providing services in the nature of air travel agents. We find that service tax has already been charged on the entire flight tickets and the appellant is not required to charge any further service tax on the same. The commission of the Appellant is built in the flight ticket itself. Section 65(4) of the Finance Act, 1994 provided for "air travel agent" as any person engaged in providing any service connected with the booking of passage for travel by air. We find that....
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....sidered the said service as liable to service tax under the category of 'business auxiliary service'. In view of our findings in the preceding paras, it has been held that the services rendered by the appellant are 'air travel agent service' only and not liable to service tax under 'business auxiliary service'. Thus, we observe that service tax has been rightly collected by the Appellant on air travel agent services and the said collection of services cannot be considered as excess collection. We also find that there is no finding in the impugned order that the appellant has collected excess service tax under the category of 'air travel agent service' and retained the same. The appellant claimed that whatever service tax collected by them have already been deposited by them in the government account and there is no short payment. However, the correctness of the claim of the appellant needs to be verified by the adjudicating authority. Thus, for the limited purpose of verifying the correctness of the claim made by the appellant, this issue is remanded back to the adjudicating authority. 12. We also find that the demand in this case has been confirmed by invoking the extended ....