TMI Blog2018 (2) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... bought directly from the airline or through the GSA the same would not make any difference. Also, the issue squarely covered by the decision in the case of Commissioner of Central Excise, Goa v. Zuari Travel Corporation [2013 (7) TMI 911 - CESTAT MUMBAI], where it was held that The activity undertaken by respondent herein, who is a sub-agent of the IATA agent comes under Air Travel Agents Services or Business Auxiliary Services. The impugned order classifying the service under business auxiliary service is not sustainable in law - appeal allowed - decided in favor of appellant. - ST/86033 & 86034/2014 - A/85152-85153/2018 - Dated:- 31-1-2018 - Shri S. S. Garg, Member ( Judicial ) And Shri C J Mathew, Member ( Technical ) Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax on the booking of the ticket. The appellant approached the GSA for booking of the tickets which is issued directly in the name of passenger. GSA issues the ticket and pays the service tax on the booking of the tickets. The appellant raises invoices to the customers for the sale of tickets. The difference in the amount charged by the GSA to the appellant and the appellant to the customer is the commission earned by the appellant. The appellant did not pay the service tax on the said commission based on the contention that the services are appropriately classified under air travel agent services and exempt under notification No. 22/1997 ST dated 26/06/1997 and the service tax has already been discharged by GSA on the sale of tickets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... air, they purchase the tickets from the airlines and given to the customers and on the agency charges they discharged service tax liability under the category of air travel agency services . In respect of smaller airlines, sometime they purchase the tickets from the GSA of the concerned airlines but issue tickets in the name of traveller and hands over the tickets to the appellant for further handing over to the airline travellers. On the entire commission, the GSA discharges service tax liability and part of the commission is given to the appellant. The part of the commission so received is given to the travelers by way of reduction of the price of the tickets. He further submitted that the department seeks to levy service tax on the commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Section 67(k) which provides the measure of the tax is not unconnected with the main levy of the tax for the reasons that we have already given above. 17. We have already shown here that the provision of Section 67(k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 Sharma (supra), the question was whether broker or the sub-broker is liable to pay Service Tax. In that case it was held that sub-broker is liable to pay Service Tax under Business Auxiliary Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d perusing the appeals records and various judgments relied upon by the appellant, we find that the services rendered by the appellant in booking of passes for travel by air which is squarely covered by the definition of air travel agency service as defined under Section 65(105). As per the said definition of air travel agent means any person engaged in providing any service connected with the booking of passage for travel by air and the taxable service means any service provided or to be provided to any person by an air travel agent in relation to the booking of passage for travel by air 9. In view of the statutory definition, any activity in relation to booking of passes by air travel agent would be covered under air ..... X X X X Extracts X X X X X X X X Extracts X X X X
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