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2015 (7) TMI 857 - HC - Service TaxWaiver of pre deposit - Business Auxiliary Service - services rendered to Computerized Reservation System (CRS) companies - Tribunal has found that prima facie the activity is taxable as BAS - Held that:- It may be that the CRS companies receive huge amounts from the airlines so that they access their ticketing systems and to the maximum. Thereafter the system of CRS companies are accessed by these travel agents like the Assessee. The Tribunal will have to ultimately hold that such of the airlines which give incentive to the CRS companies allowing them to get the benefit of payment made to the CRS companies by them. Meaning thereby if travel agents access the system of CRS companies and in most cases to book tickets of the airlines the financial incentives to the CRS companies by the Airlines reveals the marketing and promotional agreement. Tribunal should not have directed that the entire amount which according to it is a demand within the period of limitation needs to be secured. If the Tribunal has to devote at least 5 to 6 paragraphs to find out what is the nature of the service allegedly provided and to whom and whether that falls within the definition, then, this was a imminently arguable case. It could not be termed as absence of a prima facie case in any event. In the circumstances, we think that the Tribunal should not have rendered any conclusion and particularly that the service rendered by the Assessee merits classification as business auxiliary service as defined in law - Patial stay granted.
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