Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Srilankan Airlines Ltd. Versus Commissioner of Service Tax

2017 (11) TMI 354 - CESTAT CHENNAI

Valuation - includibility - Fuel Surcharge (YQ Tax) - Passenger Service Fee (PSF) - GDS cost collected (YR) - Held that: - The controversy concerning taxability of Passenger Service Fee collected by the airlines from the passengers in their air ticket has indeed been set to rest in the case laws adduced by the Ld. Advocate. Hence there can be no service tax liability on the quantum of 'passenger service fees' collected by the appellant under this head. - For the limited purpose of ascertaini .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- there was sufficient cause for the appellant's failure to discharge their tax liabilities. Another mitigating factor is that the appellants have paid up the entire tax liability as admitted by them along with interest, before the issue of the show cause notices. Keeping all these aspects in mind, we are of the considered opinion that imposition of penalty would be an overkill, for which reason, they are set aside. - Appeal allowed in part and part matter on remand. - Appeal No. ST/235, 236 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for the air tickets, additional charges are also collected under the heads Fuel Surcharge (YQ Tax), Passenger Service Fee (PSF), GDS cost collected (YR), Service Tax collected (JN tax) and Other Taxes (various codes). Department initiated proceedings against the appellant on the plea that service tax liability would arise on these additional heads collected from the passengers also. Two SCNs dt. 14.05.2008 and 23.04.2009, were issued to the appellant inter alia, proposing recovery of demand of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

₹ 49,44,107/- and ₹ 6,82,128/- i.e. total of ₹ 56,26,235/- with interest thereon. The amounts paid up by appellant were appropriated. Penalty of ₹ 50 lakhs was imposed under Section 78 of the Finance Act, 1994. Hence these appeals. 3. Today, when the matter came up for hearing, on behalf of appellant, Ld. Counsel Shri Harish Bindumadhavan made the oral and written submissions which can be summarised as under : (i) The issue of taxability of Passenger Service Fee is no lo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(Tri.-Del.) (ii) In respect of the demands confirmed on all other heads, additional surcharges, GDS cost collected and other taxes, conceded tax and interest thereon and have already paid up the differential tax amount along with interest. (iii) The counsel explained that the term "other taxes" represents taxes and passenger service fees collected from the airline by various airports around the world; however in regard to these charges also, they do not contest and have paid the tax li .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or the impugned order that the appellants have paid the tax liability in respect of "other taxes" as stated by them during the hearing. 5. Heard both sides and have gone through the facts. The controversy concerning taxability of Passenger Service Fee collected by the airlines from the passengers in their air ticket has indeed been set to rest in the case laws adduced by the Ld. Advocate. Hence there can be no service tax liability on the quantum of 'passenger service fees' co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version