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Issues Involved: Challenge to order u/s Finance Act, 1994 for imposition of Service Tax on incentive received from Centralised Reservation System developers.
Summary: Issue 1: Scope of Service Tax Imposition The petitioner, a company providing air ticket booking services, challenged an order imposing Service Tax on incentives received from CRS developers. Petitioner argued no service provider-client relationship existed. Respondent confirmed Service Tax, Education Cess, interest, and penalty under Finance Act, citing Business Auxiliary Service classification. Petitioner contended incentives were not taxable due to lack of service provision. Issue 2: Statutory Remedy of Appeal Respondent argued petitioner should have appealed the original authority's order instead of filing a writ petition directly. Court noted the availability of an appeal mechanism under the Act. Petitioner's rush to the Court without exhausting the statutory remedy was deemed unsustainable. Court directed petitioner to file an appeal within two weeks for proper adjudication by the appellate authority. Conclusion: The Court disposed of the writ petition, emphasizing the need to follow statutory appeal procedures before approaching the Court. Petitioner was directed to appeal the order within the specified timeline for further consideration by the appellate authority. The interim order period was excluded from the appeal filing limitation.
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