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2018 (4) TMI 1045 - AT - Service TaxSupply to Tangible Goods Service - classification of services - the appellant were providing helicopter to the State Government for transportation of their personnel as and when required and for this purpose they were required to keep helicopter in readiness at particular places, maintain the same and also provide qualified and experience crew for their operation and maintenance - whether the service provided by the appellant is “Transportation of Passengers by Air within India” or “Supply to Tangible Goods Service”? Held that: - The expenses on fuel, maintenance, parking etc. are to be borne by the appellant in terms of the agreement - The appellant were to receive certain minimum fixed monthly charges on account of certain minimum flying hours per calendar month, in addition to this, they will also receive remuneration on per hour basis during the period when the helicopter had been operated for transportation. An identical issue regarding charter hire of helicopter to ONGC came up before the Tribunal in the case of Global Vectra Helicorp Ltd. vs. CC (Import) Mumbai [2015 (2) TMI 974 - CESTAT MUMBAI (LB)], in that case the appellant therein claimed the classification of their service as Transportation of Passengers by Air Service. But, the Tribunal after very detailed discussion of the facts and various case law on the subject as well as CBEC Circular No. 20/2009 dt. 09.02.2009 came to the conclusion that the services will be rightly classifiable under the category of “Supply to Tangible Goods Service”. Classification of the service rendered under the category of “Supply to Tangible Goods Service” upheld. Technical Inspection Certificate Service - reverse charge mechanism - Since the service received was from service providers situated abroad, the department has confirmed service tax demand against the appellant under Section 66A of the Finance Act - Held that: - the above payments were made by the appellant towards receipt of services from abroad - The service tax on such services is required to be paid by the recipient under the reverse charge basis in terms of Section 66A of the Act read with Rule 2(1)(d) of the Service Tax Rules, 1994 - demand upheld. Appeal dismissed - decided against appellant.
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