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2024 (7) TMI 1402 - AT - Service TaxLevy of service tax - Tour Operator Services on charges received for outbound tours - Business Auxiliary Services on incentives received for use of Amadeus software - extended period of limitation. Whether the appellant is liable to pay service tax under Tour Operator Services on charges received for outbound tours? - HELD THAT - The Division Bench of the Tribunal in the case of M/s Weldon Tours Travels Pvt. Ltd. 2024 (5) TMI 371 - CESTAT NEW DELHI had occasion to consider the demand of service tax raised on outbound tours for the period prior to 01.07.2012. After considering the observations made by the Hon ble Apex Court in the case of All India Federation of Tax Practitioners 2007 (8) TMI 1 - SUPREME COURT and also the decision of the Larger Bench dated 19.10.2023. It was observed that since the tour is happening outside India the charges received for operating and arranging outbound tours is not subject to levy and collection of service tax. The Coordinate Bench of the Tribunal set aside the demand raised on outbound tours. By judicial discipline following the decision in the case of M/s Weldon Tours Travels Pvt. Ltd. 2024 (5) TMI 371 - CESTAT NEW DELHI the demand of service tax for the disputed period on outbound tours cannot sustain and requires to be set aside. Whether the appellant is liable to pay service tax under Business Auxiliary Services on incentives received for use of Amadeus software? - HELD THAT - The said issue is settled by the Lager Bench in the case of M/s. Kafila Hospitality Travels Pvt. Ltd. 2021 (3) TMI 773 - CESTAT NEW DELHI (LB) where it was held that Consideration which is taxable under Section 67 of the Finance Act should be transaction specific. Incentives on the other hand are based on general performance of the service provider and are not to be related to any particular transaction of service. It needs to be noted that commission on the other hand is dependent on each booking and not on the target. If the air travel agent does not achieve the predetermined target incentives will not be paid to the travel agents. The decision in the case of M/s. Kafila Hospitality Travels Pvt. Ltd. was followed by the Tribunal in the case of Asveen Air Travel (P) Ltd. versus Commissioner of GST CE Chennai 2022 (4) TMI 1035 - CESTAT CHENNAI . After appreciating the facts and following the decision of the Larger Bench in the case of M/s. Kafila Hospitality Travels Pvt. Ltd. it is opined that the demand of service tax on incentives/charges for use of Amadeus Software for booking air tickets cannot sustain under Business Auxiliary Services and requires to be set aside. The impugned orders are set aside - appeal allowed.
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