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2016 (11) TMI 1351 - AT - Service TaxLevy of tax - transport of goods by air - the chargeability of service tax on the amount collected from passengers as charges for transportation of their ‘excess baggage’ by the appellant Airline during the period of 10.9.2004 to 13.09.2006, when the service of ‘Transportation of Passengers by Air’ was not under taxable category - Held that: - carrying excess baggage on payment of certain fee/tariffs for the passengers who have opted to use air services of the appellant is an integral part of the main service provided by the appellant. The incidental service of ‘transportation of excess baggage by air’ cannot be charged service tax under the category of service of ‘transportation of goods by air’ as defined under Section 65 (105) (zzn) of the Finance Act, 1994, CESTAT Mumbai in the case Kingfisher Airlines Ltd. Vs. Commissioner of Service Tax, Mumbai [2015 (11) TMI 54 - CESTAT MUMBAI (LB)], where it was held that The excess baggage charges collected by the appellants are an integral part of the main service namely transportation of passengers by air. Therefore, the demand of service tax is set aside. Appeal allowed - decided in favor of appellant.
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