2016 (8) TMI 989 - CESTAT MUMBAI

Demand of tax, interest and penalty – airlines business - classification - online information and database access or retrieval service – service received from foreign based service provider - computer reservation system – reverse charge mechanism – Section 66A of the Finance Act, 1994 – definition of service - Section 65 (75) of the finance act, 1994 – definition of taxable services - 65 (105)(zh) of the Finance Act, 1994 – Held that: - the activities of CRS Companies would fall under the category of “online information and database access or retrieval service as decided in the case British Airways 2014 (6) TMI 626 - CESTAT NEW DELHI (LB).

Revenue neutrality – CENVAT credit - transport of passenger by air and other services – Held that: - the appellant could have availed CENVAT credit of the service tax paid on reverse charge mechanism as they are liable to pay tax on output service hence Revenue neutral situation arises wherein appellant pays the tax and takes the credit. It is trait law that question of Revenue Neutrality is a good ground, more so when the tax liability is being discharged under reverse charge mechanism. This very plea of revenue neutrality in an identical issue was raised in British Airways case and decided in favor of appellant. – appeal disposed off – decided in favor of appellant.