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2014 (12) TMI 458 - AT - Service TaxWaiver of pre-deposit - levy of service tax on collection of development fees for development of the airport in future - airport services - Held that:- Levy of development fee has been struck down by the Hon'ble Supreme Court holding that the applicant is not entitled to collect the development fee from the passengers through airlines in the case of Consumer Online Foundation (2011 (4) TMI 1275 - SUPREME COURT OF INDIA). Therefore, it is not a service and the same view has been taken by this Tribunal in the case of Cochin International Airport Ltd. (2009 (7) TMI 120 - KERALA HIGH COURT) which has been affirmed by the Hon'ble Kerala High Court. Further, as argued by the learned Spl. Counsel that intention of the parties has to be seen as they have collected the development fee as service to be provided in future. We have seen the intention of the parties and gone through the records placed before us. On the basis of the records, we find that from May 2012 onwards the applicants have charged tax on these development fees from the airlines and whatever service tax collected by them has been paid to the department. In these circumstances, prima facie, the applicants have made out a case for complete waiver of pre-deposit of the entire amount of service tax, interest and penalties. Accordingly, we waive the requirement of pre-deposit of the entire amount adjudged and stay recovery thereof during the pendency of the appeals. - Stay granted.
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