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2012 (5) TMI 346 - AT - Service TaxPackage tour services - Tour operator - valuation - gross value - inclusion - TTD darshan ticket charges, RFC entry fees, hill transportation charges and waterfleet charges - held that:- TTD darshan, sightseeing in RFC etc. are supplementary services rendered by the appellant in relation to package tour, the collections for the same from the tourists cannot be typified as 'reimbursements'. - Such collections do not answer the test laid down in the above order of the Tribunal and are necessarily to be part of the taxable value. - The decision in Scott Wilson Kirkpatrick's case (2006 (10) TMI 4 (Tri)) was based on a circular of Director-General of Service Tax. Nobody has relied on any DGST circular before us. - Decided against the assessee. Benefit of abatement - held that:- The appellant is entitled to abatement to the extent of 60% on the gross taxable value (including all the said charges) under Notification No. 39/1997-ST up to 28/02/2006 and under Notification No. 1/2006 from 01/03/2006 to 22.8.2007. They can claim 75% abatement under the latter Notification (as amended) from 23.8.2007. Cenvat credit - nexus between output and input service - held that:- the credit In question cannot be allowed to the appellant inasmuch as, in this appeal, they have not brought out any nexus between the so-called input services (architect services and technical services) and the tour operator's service. Their claim that they are eligible for the credit under the CENVAT Credit Rules 2004 remains Ipse dixit as they have not shown that the said services fell within the ambit of the definition of 'input service' under rule 2(1) of the CENVAT Credit Rules 2004. - Decided against the assessee. Extended period of limitation - held that:- The definition of 'tour operator' came to be amended twice during the material period and Notification No. 39/97-ST was superseded by Notification No.1/06-ST and the latter was amended by Notification No.38/07-ST, all these during the material period. It appears, these changes created confusion in the mind of the appellant on the question whether the charges/fees collected by them from tourists for TTD darshan, RFC visit, boat cruise etc. were to be included in the gross taxable value of tour operator's service for the purpose of claiming abatement. In our view, in these circumstances, it was not correct on the part of the Department to allege that the appellant had wilfully suppressed facts with intention to evade payment of service tax. - Decided in favor of assessee. Penalties - benefit of section 80 - "reasonable cause - held that:- the appellant can legitimately claim the benefit of Section 80 of the Act. Both the penalties are liable to be set aside on this ground.
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