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2017 (8) TMI 220 - CESTAT CHENNAICommission received - business of providing service of booking air travel tickets - basic fare - interpretation of the word basic fare - The basic allegation is that appellant has not discharged service tax on the supplementary commission received by them. Held that: - It is not seen stated either in the show cause notice or in the Order-in-Original whether the appellant has received from the Customer ₹ 13,500. On behalf of the appellant the Learned Counsel has explained that such basic fare is not the price at which the ticket is sold to the customer and that appellant has not received any amount in the manner of supplementary Commission. The worksheet produced by the appellant also shows that the appellant has not received any such supplementary commission. However, this aspect has to be verified with the accounts/records of appellant before entering into a conclusion. For this, the matter requires to be remanded. Section 67 of the Finance Act, 1994 provides that value of taxable services includes the commission received by air travel agent from the airline, and does not include the airfare collected by air travel agent in respect of service provided by him - N/N. 20/97 dated 26.06.1997 makes it clear that basic fare means, that part of the fare on which commission is normally paid to the travel agent by the airlines. Therefore it needs to be verified as to what is the actual commission received by the appellant. In a similar issue the Tribunal in the case of Aero World Travels Vs CCE, Jalandhar [2005 (2) TMI 7 - CESTAT (NEW DELHI)] observed that Revenue was in error in treating the printed fare on the tickets as basic fare. This indicates that the word basic fare used by IATA in their BSP statement and the basic fare used in Notification 20/97 dated 26.06.1997 may not be the same. The matter requires to be remanded to the original authority who shall verify as to the quantum of actual commission received by appellant - appeal allowed by way of remand.
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