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2017 (11) TMI 354 - AT - Service TaxValuation - includibility - Fuel Surcharge (YQ Tax) - Passenger Service Fee (PSF) - GDS cost collected (YR) - Held that: - The controversy concerning taxability of Passenger Service Fee collected by the airlines from the passengers in their air ticket has indeed been set to rest in the case laws adduced by the Ld. Advocate. Hence there can be no service tax liability on the quantum of 'passenger service fees' collected by the appellant under this head. For the limited purpose of ascertaining whether the tax liability that was alleged in respect of "other taxes" has also been paid up by the appellant along with interest as averred, the matter is being remanded back to the adjudicating authority. In such de novo proceedings, in case it is ascertained that all the tax liabilities except that relating to Passenger Service Fee has been paid by the appellant along with interest thereon, there shall be no further tax liability in respect of these proceedings. Penalty - Held that: - there was sufficient cause for the appellant's failure to discharge their tax liabilities. Another mitigating factor is that the appellants have paid up the entire tax liability as admitted by them along with interest, before the issue of the show cause notices. Keeping all these aspects in mind, we are of the considered opinion that imposition of penalty would be an overkill, for which reason, they are set aside. Appeal allowed in part and part matter on remand.
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