Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2009 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (9) TMI 376 - AT - Service TaxAir travel agent services- The service tax liability has arisen on the ground that the appellant has not discharged the service tax liability as air travel agent for the period July 2001 to March 2005. The appellant submits that they are not disputing the liability to pay service tax but only the method of calculation of service tax is being disputed. He would draw our attention to rule 6(7) of Service Tax Rules, 1994 wherein the option for payment of service tax, calculated at specific rate of basic fare is available to an air travel agent for a financial year. He would submit that for the period April 2002 to March 2005, they can exercise the option of discharge of service tax liability as provided under section 66 of the Finance Act, 1994. He submits that the learned Commissioner (Appeals) has not given the option to the appellants to do so. On a specific query from the Bench it is his submission that service tax liability which is calculated as per the provisions of section 66 would amount to approximately Rs. 6,00,000 (Rupees six lakhs only). Held that-On such compliance being reported by the learned Commissioner (Appeals) shall reconsider the issue afresh, addressing the contentions raised by the appellant as regards the applicability of rule 6(7) of the Service Tax Rules, 1994 for the period April 2002 to March 2005, read with section 66 of the Finance Act, 1994. Learned Commissioner (Appeals) will reconsider the matter without insisting on any further pre-deposit after following principles of natural justice. Stay petition and appeal are disposed of accordingly.
|