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2017 (10) TMI 506 - AT - Service TaxBusiness Auxiliary Services - appellants are rendering services of air travel agent to their customers and are registered with service tax department and utilized computer reservation software provided by Galileo for booking of air tickets for their customers - Held that: - there is a special relationship between the appellant and M/s. Galileo whose CRS system the appellant is using. The incentive which has been called by the Department as commission is the consideration for giving certain kind of marketing and promotional support to the software product (CRS / GDS) pertaining to Galileo - any service which is incidental or ancillary to any activity specified in sub clause (i) & (ii) of the definition [which pertain to promotion or marketing or sale of goods produced / provided pertaining to the client or promotion or marketing of services provided by the client (here it is Galileo) would be covered under the definition of ‘Business Auxiliary Services’ and the consideration received for said services will be chargeable to service tax under ‘Business Auxiliary Services’. The Tribunal in the case of D. Pauls Consumer Benefit Consumer Benefit Ltd. Vs. CCE New Delhi [2017 (3) TMI 1019 - CESTAT NEW DELHI] has held that such services as provided by the present assessee / appellant is covered by the category of ‘Business Auxiliary Services’ as defined under section 65 of the Finance Act 1994. Penalty u/s 78 - Held that: - In the present case, the demand confirmed is of ₹ 2,59,195/- whereas the penalty has been imposed of ₹ 3 lakhs, the said penalty therefore, is reduced to ₹ 2,59,195/- - the appellant is given the benefit of option to discharge 25% of penalty on fulfillment of the conditions provided under Section 78 of the Finance Act. Appeal allowed in part.
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