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2010 (4) TMI 700 - AT - Service TaxPort Services - Royalty charges - Licence fees - Held that: - the demand of service tax on the royalty charges collected by appellants from M/s. Air India can be construed as an amount for lease or rental charges for functioning in the appellant’s area. - the service tax liability on amounts collected from M/s. Air India in any from would not arise. Allocation of space and charging royalty - the licensees i.e. M/s. Thomas Cook, Atlas Jewellery etc., have taken the area on lease and as per the CBEC Circular dated 17-9-2009, such charges would not be subject to service tax as the activity of letting out premises is not rendering services. Licence fee charged by the appellant on advertising, cargo agency, car parking, space, shops, restaurant/snack bar, telephone operator, vending machines, catering services facilitation counter - these charges cannot be considered as the charges which have been collected by the appellant from other service providers for services rendered definitely with the airport services. - Not chargeable to service tax Income from guest room, courtesy coach parking and surcharge on prepaid taxi - these charges are liable to service tax. Income from entry ticket charges and income from issue of commercial passes - these charges are charged by the appellant for restricting the entry to public in to the Airport. The said income is not in respect of any services rendered by the appellant as an Airport Authority. - this amount collected and shown as income could not be construed as services rendered and liable to service tax.
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