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2017 (9) TMI 625 - CESTAT NEW DELHIValuation - service of transportation of the passengers by air - includibility - passenger service fee - airport taxes - The claim of the appellant is that the amount collected, as PSF and airport taxes are not towards considerations of air travel and hence are not liable to be taxed - Held that: - the persons availing the facilities in airports are the passengers, who are in the process of either inward or outward air travel. The appellants are issuing tickets for such air travel, which in any case, cannot be performed unless the passengers enter and passes through the airports - The Airport Authority fixed certain charges as passenger service fee. This is apparently for the services rendered to the passengers in the airport. The passenger pay such charges as part of the ticket. Admittedly, service tax on such passenger service fee has been claimed to have been duly remitted by the Airport Authority, which was collected from the passengers by the appellant. Verification of these details can be made by the jurisdictional officers - addition of PSF in the taxable value at the hands of the appellant may result in double taxation. Admittedly, the PSF is forming part of airport service in terms of Section 65(105)(zzm). The very same PSF cannot be subjected to service tax under transport of passenger service. Appeal allowed - decided in favor of appellant.
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