TMI Blog2011 (1) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... Malhotra, Additional Solicitor-General, Harish Chandra, Senior Advocate (Ms. Aruna Gupta and B. Krishna Prasad, Advocates, with them) for the respondent. Raghenth Basant and Ms. Liz Mathfew, Advocates, for the appellant. JUDGEMENT Per : Dr Mukundakam Sharma, J : 1. Leave granted. 2. The issue that falls for consideration in this appeal is whether the appellant, who is a licencee, could be held liable for payment of service tax when actually the service provided by them could and should be said to be provided by the Airport Authority of India (for short "AAI"). It was contended on behalf of the assessee that the role of the licensee-appellant was the role of an agent and was therefore limited to collecting of fees for the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ................................................ Now, therefore, this indenture witnesseth: ........................................................................ 4. That the Licensee shall pay all rates, assessment, out goings and other taxes as leviable on the Licensee in 'Laws'. ........................................................................ 9. That the Licensee shall equipped himself with all necessary permits, licenses and such other permissions as may be required under law in force at any time with regard to the operation of the Subject licence. 10. That the Licensee shall maintain such regular and proper account books along with other supporting documents regarding sales effected by the Licensee in the said pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y AAI to collect the admission ticket charges so as to provide amenities and facilities to the passengers and visitors at the Airport. Under the said agreement, the appellant was also required to pay all rates, assessment, out goings and other taxes as leviable on the Licensee as per law. It is also clear therefrom that AAI has only provided bare space and all expenses for providing services to passengers / visitors are to be borne by the appellant. 2. As per Clause 105 (zzm) of Section 65 of Finance Act, 1994 'taxable service' means any service provided to any person, by Airport Authority or any person authorized by it, in an Airport or a Civil Enclave. As per Clause (3d) of Section 65 of the Finance Act, 1994 Airport Authority' means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the service tax and responsibility of the collection of service tax was that of AAI as the principal service provider of the Airport and that the appellant was only authorized to collect the prescribed admission charges and remit the fixed licence fees to AAI. 5. The adjudicating authority considered the entire matter and after careful consideration of the reply of the appellant and after giving a hearing to the appellant confirmed the demand of service tax of Rs. 1,64,106/- and education cess of Rs. 3,282/- with interest under Section 75 of the Finance Act, 1994. 6. Being aggrieved by the said order, appellant filed an appeal before the Commissioner of Central Excise Customs (Appeals), Cochin. The Commissioner (Appeals), however, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore. 9. The licence agreement clearly stipulates that AAI is entitled in law to grant licence at its Calicut Airport for the purpose of airport admission so as to provide amenities and facilities to passengers and visitors at the Airport and that the licensee, i.e., appellant, has agreed under the licence agreement to render such services to AAI on the terms and conditions mentioned in the said licence agreement. One of such stipulations was that the licensee would pay all rates, assessment, out goings and other taxes as leviable on the licensee in laws. 10. Another responsibility that vested on the licensee was to maintain regular and proper account books along with other supporting documents regarding sales effected by the licensee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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