TMI Blog2013 (7) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Commissioner of Central Excise Service Tax (Appeals), Goa. 2. The question for consideration before the lower appellate authority was whether the sub-agent of an IATA Agent, who books the tickets of Air for customers and gets commission from IATA Agent, is rendering services under the category of Business Auxiliary Services or under the category of Air Travel Agent . The learned Commissioner came to the conclusion that the sub-agent is rendering the service classifiable under Air Travel Agent Services and not under Business Auxiliary Services . Accordingly, he set aside the order of the adjudicating authority dated 17.2.2006, wherein the classification was done under Business Auxiliary Services . Aggrieved of the said deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble High Court of Madras in the case of Airlines Agents Association Vs. Union of India 2006 (3) STR 3 (Mad.), wherein it was held that in respect of the services rendered by Airlines Agents/IATA Agents, the services is rendered to the customers and not to the Airlines. In the present case also, the same logic would apply and, therefore, the services rendered by the sub-agent are to the customers and, therefore, the same would merits classification under Air Travel Agent Services as defined in law. Therefore, the impugned order is correct in law and sustainable. Accordingly, it is pleaded that the Revenues appeal has no merits and should be dismissed. 5. We have carefully considered the submissions made by both the sides. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any information technology service and any activity that amounts to manufacture within the meaning of clause (f) of section2 of the Central Excise Act, 1944 (1 of 1944). Explanation For the removal of doubts, it is hereby declared that for the purposes of this clause, (a) commission agent means any person who acts on behalf of another person and causes sale or purchase of goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... measure of the tax had no nexus with levy therein. In our case, however, such is not the position. We have already shown that the measure of the tax provided by Section 67(k) cannot be said to be totally connected with the services offered by the air travel agents which is the main subject of tax. Therefore, we hold that the observations in Buxa Dooars case, cited supra, in paragraph 11 which have been quoted by us would not be applicable to the present situation. This is apart from the fact that the observations in paragraphs 10 and 11 of the Buxa Dooars case were not approved by the Supreme Court in Goodricke Group Ltd. case, cited supra, was entirely different but, that is a different subject altogether. We have already held that Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to the facts of the present case. If the services rendered by the IATA agent is Air Travel Agents Services , the services rendered by a sub-agent is also the same and it cannot be different from that if Air Travel Agents Services . In fact, the case laws relied upon by the Revenue do not support the case of the Revenue at all. In the Sew Construction Ltd. case (supra), the issue for consideration was whether sub-contractor is liable to pay Service Tax for the services rendered to the contractor and it was held that sub-contractor is liable to pay Service Tax and the classification of the service rendered by the sub-contractor is not different and remains the same as services rendered by the contractor. Similarly, in the case of Vijay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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