TMI Blog2011 (5) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... e made out a strong prima facie case for waiver of dues as per the impugned orders, pre-deposit waived - ST/824 and 841/2010 - ST/276-277/2011(PB) - Dated:- 9-5-2011 - Ms. Archana Wadhwa, Shri M. Veeraiyan, JJ. S/Shri J.M. Sharma, Consultant and Madhav Rao, Advocate, for the Appellant. S/Shri Sonal Bajaj and Sumit Kumar, SDRs, for the Respondent. [Order per : M. Veeraiyan, Member (T) (Oral) (for the Bench)]. Application by M/s. Amadeus India Pvt. Ltd. is for waiver of pre-deposit of Service tax amounting to Rs. 13,98,16,429/- along with interest, penalty imposed under Section 76 and further penalty of Rs. 1000/- under Section 77 of the Finance Act, 1994. 1.2 The application by M/s. Galileo India Pvt. Ltd. is for waive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tickets and other requirements are confirmed from the data base of the server. The applicants received payment from Galileo International based on the bookings made and each segment of travel being treated as a separate unit for the purpose of making payments. The original authority held that the applicant has rendered business auxiliary services and the said services have been rendered to the Travel agents in India. It has been found by the Commissioner that the applicant has rendered services in India for promotion, marketing and distribution of services of the foreign company to travel agents in India. It has also been held that travel agents are paid sums by the applicants for their assistance in marketing and promoting Galilieo CRS. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards exports, Commissioner of Income Tax (Appeals) and the ITAT held that the receipts are towards exports and allowed deduction in terms of Section 80HHE of the Income-tax Act. In the case of M/s. Galileo India Pvt. Ltd., the Income tax authorities have allowed the benefit of Section 80HHE of the Income Tax Act treating the same as export proceeds. In view of the above, there is no basis for treating their activities as anything other than export of software or export of processed data and therefore question of levying Service tax treating these activities as Business Auxiliary services is not justified. 4. Learned DR strongly supports the order of the Commissioner. He submits that the applicants along with travel agents are involved in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed travel agents to the applicants. On the other hand, undisputedly, the applicants are giving various incentives to the travel agents. Under these circumstances, we are not in a position to, prima facie agree, that the applicants are rendering services to the travel agents. Even if it is held that the applicants are rendering services to the travel agents in India, there are no payments received from the travel agents for such services. Further, the India based passengers who could be considered as ultimate beneficiaries are availing benefits in foreign countries by utilising the Airlines services, hotel accommodation etc. in foreign territories. The income-tax authorities including ITAT have held that the activities undertaken by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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