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TMI Blog2013 (9) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... Agents and had obtained registration with the department under the category of "Air Travel Agent" Service. In providing the service of air travel ticket booking, the appellant used central "Computer Reservation Systems" (CRS) software supplied by M/s Galileo/Amedeus India Pvt. Ltd etc. The investigation conducted by this Department revealed that the appellants as Air travel agents have been receiving incentive/commission from CRS developers and it appeared that this incentive/commission received is taxable with effect from 01.07.2003 under the category of "Business Auxiliary Service". As it appeared that the appellants had not discharged the service tax liability on the above said incentive received, they were issued with the Show Cause Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered as the client of the appellant. 4.0 I have carefully gone through the records of the case and the submissions made. I find that this issue had already been settled in favour of the appellant by this forum. This forum had already taken a consistent view that the incentives received by the appellant from the CRS developers are not liable for service tax. 5.0. As the issue, prima facie, is strongly in favour of the appellant, I granted unconditional waiver of pre-deposit and took up the main appeal for decision, without offering the opportunity of being heard in person, to the appellant. 6.0 The Department had alleged that the appellant by continued usage of the software are providing service by promoting the business of CRS Develope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the clients nor is billed to the clients. In fact the lower authority in the Order-in-Original dated 27-2-2005 has observed "there is no dispute that the cash discount and incentives are not received by the assessee in relation to the service provided by them to their clients." We are surprised that after making such observations the authority has chosen to confirm the demand. In view of the above findings, the impugned Order-in-Appeal confirming the Order-in-Original does not have merit. We set aside the impugned order and allow the appeal with consequential relief." 7.0. As such, the amount collected as incentive is in no way connected to the service rendered by the appellants to their clients in providing the service of booking air t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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