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TMI Blog2017 (3) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... avel Agent‟s Services" and they have been issuing air tickets of various airlines and paying Service Tax on the amount of basic fare. For the purpose, the assessee-Appellants used Computer Reservation System (CRS) of M/s Galileo India, Amadeus India and Calleo Distribution to encourage their business, for which they have been paying the incentives against the segment booked by the assessee-Appellants during the disputed period from 01st October, 2003 to 31st December, 2008. The lower authorities has observed that the services provided by the assessee-Appellants fall under the category of "Tour Operator‟s Services" as defined under Section 65(11)(o) of the Act. Being aggrieved, the assessee-Appellants have filed the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57 (Bang.-CESTAT). Lastly, he made a request that the impugned order may kindly be set aside. On the other hand, the learned DR for the Department, relied upon the impugned order and submits that the commission received for GDS/CRS usage is fully covered under the heading "Business Auxiliary Services". Hence, the demand of Service Tax was rightly confirmed by the lower authorities on this issue. 5. After hearing the rival submissions and on perusal of record, it appears that the assessee-Appellants are travel agent and providing the tickets for air as well as railways. They also act as the „Rail Travel Agent‟s Service‟ which is covered under Section 65(87) of the Finance Act, 1994 and liable to pay the Service Tax. Regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was mentioned that : "15.1.2 It is clarified that incentives received by the Air Travel Agents (ATAs) from the Companies providing Computer Reservation System (CCRS) are for using the software and platform provided by the CCRS like Galileo, Amadeus, etc. The CCRS are providing these incentives either for achieving the targeted booking of air tickets or for loyalty for booking of air tickets using their software system. Thus, the service provided by CCRS is to the Airlines and Air Travel Agent is promoting the service provided by CCRS to Airlines. Thus, the service provided by the ATAs to CCRS is neither covered in the negative list (Section 66D of the Finance Act, 1994) nor exempt by a notification. Therefore, service tax is lev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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