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2018 (5) TMI 1472 - AT - Service TaxBusiness Auxiliary Service - incentive / commission received from insurance companies for arranging overseas mediclaim policy for the clients - incentive received from CRS AMADEUS for booking air tickets - income from airlines towards cancellation of tickets. Incentive received for use of AMADEUS software - extended period of limitation - Held that: - the issue was under litigation and highly contentious, invocation of extended period do not sustain - the penalties on this count also cannot sustain - demand with penalties set aside. Incentive / commission received from insurance companies for arranging overseas mediclaim policy for the clients - Held that: - the said commission would be promotion of business of the insurance companies and therefore would rightly fall under BAS - taking into consideration that the appellant had bonafide belief that as per Board clarification, they would not be liable to pay and the same would be subject to levy only under insurance auxiliary service, the penalties imposed requires to be set aside - demand upheld - penalty set aside. Income from airlines towards cancellation of tickets - Held that: - the issue stands covered by the decision in the case of Sharma Travels [2008 (8) TMI 102 - CESTAT NEW DELHI], where it was held that it is established that the Respondent had not passed the incidence of tax to any other person. Commissioner (Appeals) rightly set aside the demand of duty - demand set aside. Tour Operator Service - charges towards delivery and handing over of tickets together with itinerary and such handing over charges - Held that: - It is not brought out from records that the appellant is engaged in tour operator service. Merely booking of tickets and collecting charges for handing over the tickets would not amount to tour operator service - demand set aside. Appeal allowed in part.
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