TMI Blog2013 (12) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... hat they are transporting goods by air. Transportation of baggage is not an individual or separate service, but it is a component of the principal service, and the principal service is transportation of the passenger by air - transportation of baggage is not an individual or a separate service, but it is a part of transportation of passengers' service by air - appellant had made out a strong prima facie case for complete waiver of pre-deposit. Accordingly, we grant unconditional waiver from pre-deposit of the dues adjudged against the appellant and stay recovery thereof during the pendency of the appeals - Stay granted. - ST/865 & 866/12 - Stay Order Nos. S/653-654/2013-WZB/C-I(CSTB) - Dated:- 21-3-2013 - P R Chandrasekharan And Anil Cho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded in the fares of the transport of passengers and therefore, the services rendered by them incidental to the transport of passengers and therefore, the Service Tax demand cannot be made under the category of transportation of goods by air as claimed by the Revenue. He relies on the Board's Circular No. 334/1/2008-TRU dated 29.2.2008 and Circular No. 104/7/2008-ST dated 6.8.2008, wherein the Board had inter alia clarified as follows:- 3.2 For the purpose of classification of a service covering number of separate services, a view has to be taken as to whether an individual service is merely a component of the overall supply or is itself a distinct and independent supply i.e., whether the component is merely ancillary to the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services are not provided as independent activities but are the means for successful provision of the principal service, namely, the transportation of goods by road. The contention that a single composite service should not be broken into its components and classified as separate services is a well-accepted principle of classification. As clarified earlier vide F.No. 334/4/2006-TRU dated 28.2.2006 (para 3.2 and 3.3) and F. No. 334.1/2008-TRU dated 29.2.2008 (para 3.2 and 3.3), a composite service, even if it consists of more than one service, should be treated as a single service based on the main or principal service and accordingly classified. While taking a view, both the form and substance of the transaction are to be taken into accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son, by air craft operator, in relation to transport of goods by aircraft and, therefore, transportation of baggage by air amounts to transportation of goods. Therefore, excess baggage charges collected by the appellant from their passengers are liable to pay Service Tax under the category of transportation of goods by air'. He also contends that in the instant case, the appellant has not disclosed the fact of collecting excess baggage charges from their customers. 5. We have carefully considered the submissions made by both the sides. 5.1 We find merit in the argument of the learned Counsel for the appellant that the principal service involved in the present case is transportation of passengers by air. While rendering the services to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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