TMI Blog2017 (10) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... r ancillary to any activity specified in sub clause (i) & (ii) of the definition [which pertain to promotion or marketing or sale of goods produced / provided pertaining to the client or promotion or marketing of services provided by the client (here it is Galileo) would be covered under the definition of ‘Business Auxiliary Services’ and the consideration received for said services will be chargeable to service tax under ‘Business Auxiliary Services’. The Tribunal in the case of D. Pauls Consumer Benefit Consumer Benefit Ltd. Vs. CCE New Delhi [2017 (3) TMI 1019 - CESTAT NEW DELHI] has held that such services as provided by the present assessee / appellant is covered by the category of ‘Business Auxiliary Services’ as defined under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incentive (commission) to the appellant assessee for continued usage and patronage of M/s. Galileo s CRS system, which is also known as GDS - Global distribution system. iv) The department s stand is that the incentive (Commission) received from Galileo India Pvt. Ltd. (Galileo) by the appellant assessee is in connection with the services provided by Galileo and therefore, the incentive received will attract the service tax under the category of business auxiliary services in terms of Section 65 (105) (zzb) of Finance Act 1994 (w.e.f. 01.07.2003). The department therefore, issued show cause notices (SCNs) dated 05.03.2009, 13.04.2010 and 18.04.2011 thus demanding service tax totalling to ₹ 2,59,195/-. v) These show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered the facts of the case and submissions of both the sides including from the document namely Galileo by Travelport; Offer to M/s. Dalmia Cement Bharat Ltd. (who is the group to which the appellant belongs to) ( Offer no. ITQPL / BOM / 022-755 ) it appears that M/s. Dalmia Cement (Bharat) Ltd. and InterGlobe Technology Quotient Private Ltd. (ITQPL) join hands in marketing and promotion of Galileo India in exchange for a support fee. These wordings marketing and promotion for the support fee , which are part of the offer [accepted by M/s. Dalmia Cement (Bharat) Ltd. by putting their signature and seal], give substantial support to the fact that elements of marketing and promotion of Galileo (who are providing subj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-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 activity that amounts to manufacture of excisable goods. 8.1. From the above definition, it is clear that any service which is incidental or ancillary to any activity specified in sub clause (i) (ii) of the definition [which pertain to promotion or marketing or sale of goods produced / provided pertaining to the client (in the present case Galileo)] or promotion or marketing of services provided b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There is no promotion or marketing of business of GDS/CRS service provider as ultimate customer buying air ticket is not concerned from what GDS/CRS he is being provided air ticket. The assessee-Appellants are in no way connected to the service rendered to the customers nor is billed to the customers. He also relied upon the ratio of the Tribunal in the case of Kerala Publicity Bureau vs Commissioner of Central Excise, 2007 (10) STT 457 (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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing agencies. So, on the facts, the ratio laid down in the said case is not applicable to the present case. 6. Needless to mention that in the Central Excise, Customs Service Tax Budget, 2016-17 (published by the legal Matrix Publications, Delhi-9, on page 258) makes a reference to High Level Committee and states that certain issues were clarified and there in paragraph 15.1.2, 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 ticket ..... X X X X Extracts X X X X X X X X Extracts X X X X
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