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2016 (8) TMI 1054 - AT - Service TaxTaxability of collection of development fee from the passengers – operational, management and development of airport - section 65(3c) of Finance Act, 1994 – definition of taxable service - section 65(105)(zzm) of Finance Act, 1994 – fundamental requirement of the demand of tax - Held that: - Section 67 defining value of taxable services for charging service tax says that the value of service shall be gross amount charged by the service provider for the service provided to the recipient. Since collection of development fee is not for any specific service rendered by them, but is a flat rate of charge to passengers, it cannot be said that the amount so collected is by way of service charge. Further, no additional benefit accrued to the passenger during the period of levy of ‘development fee.’ These are basic facilities that is inherent in the civil aviation sector – appeal disposed off – appellant not required to pay tax on development fee – decided in favor of appellant.
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