TMI Blog2017 (9) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... rges as passenger service fee. This is apparently for the services rendered to the passengers in the airport. The passenger pay such charges as part of the ticket. Admittedly, service tax on such passenger service fee has been claimed to have been duly remitted by the Airport Authority, which was collected from the passengers by the appellant. Verification of these details can be made by the jurisdictional officers - addition of PSF in the taxable value at the hands of the appellant may result in double taxation. Admittedly, the PSF is forming part of airport service in terms of Section 65(105)(zzm). The very same PSF cannot be subjected to service tax under transport of passenger service. Appeal allowed - decided in favor of appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces and the Original Authority confirmed service tax liability of ₹ 47,74,267/- against the appellant. It was held that the value of taxable service in terms of Section 67 of the Act should be the gross value and there could be no exclusion of any part as per the reasons claimed by the appellant. Penalty under Section 76 of the Act also was imposed on the appellant. On appeal, vide the impugned order, the Commissioner (Appeals) upheld the original orders. 2. Ld. Counsel for the appellant submitted that the appellants are engaged in the service of transportation of the passengers by air. The dispute in the present appeals relates to inclusion of PSF and airport taxes, in the taxable value for the said service. He submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the show cause notice and the lower authorities decided on the issue of includibility of the PSF and airport charges in the assessable value for service tax purposes. In the appeal before the Tribunal, the issue cannot be expanded to add any other questions for determination of the appeals preferred by the appellants. The ld. Counsel submitted the documents containing details of taxes and fee to be collected along with their code names in terms of IATA and also the agreements entered into by the companies, who are running airports with the Government of India with reference to collection of fee. Sample copies of invoices for ticketing were also produced. 4. Ld. AR submitted that the appellants collected charges from the passengers f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant s own case that PSF and airport taxes are not liable to be included in the taxable value for the Airlines. However, the Revenue, on examination of the documents and facts, is now bringing the full background of the case for determination by the Tribunal. This was made even in respect of a similar appeal by Air Canada. The Tribunal vide Final Order No.52137 of 2017 held that unless it is separately shown the inclusion is tenable in terms of clear legal provision, a service tax, as demanded, is liable to be paid. 5. We have heard both the sides and perused the appeal records. 6. The issue is relating to tax liability of certain part of considerations received by the appellant while selling tickets to the passenger for air tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction with their operation or to the passenger, which in any case, is also relatable to their travel. In other words, the persons availing the facilities in airports are the passengers, who are in the process of either inward or outward air travel. The appellants are issuing tickets for such air travel, which in any case, cannot be performed unless the passengers enter and passes through the airports. 8. The Airport Authority fixed certain charges as passenger service fee. This is apparently for the services rendered to the passengers in the airport. The passenger pay such charges as part of the ticket. The appellants pleads that they are not rendering any service towards such fee. 9. During the course of argument, the appellants have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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