TMI Blog2018 (4) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... it to the said authority - demand set aside. Excess Baggage Charges - Held that: - the said amount was collected from the passengers for carrying extra luggage above the normal level prescribed by the airlines. Such charges does not fall under any of the category of defined taxable service for the purpose of levy of service tax - demand set aside. The tickets sold by the appellant prior to the tax liability i.e. 1.5.2006 and used thereafter by the passengers - time limitation - Held that: - This Tribunal in the case of National Aviation Co. of India Ltd. [2015 (8) TMI 596 - CESTAT MUMBAI] has held that in absence of any specific exemption provided for the tickets used after 1.5.2006, the assessee is under statutory obligation to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant, seeking confirmation of service tax demand for non included Passenger Service Fee (PSF) and Excess Baggage Ticket (EBT) sold by the appellant during disputed period. Further, the department also alleged that the appellant did not pay the service tax on the tickets sold prior to 1.5.2006., but used by the passengers after such date. The matter was adjudicated vide impugned order dated 2.8.2013 by the Commissioner (Adj.), service tax, New Delhi, wherein service tax demand of ₹ 2,25,32,940/ - was confirmed along with interest. Besides the impugned order also imposed penalty under Section 76, 77 7 8 of the Finance Act, 1994 on the appellant. 2. Shri N. Venktaraman, ld. Sr. Advocate appearing for the appellant submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce provider, the appellant is liable to pay service tax, on the taxable value of service received from the passenger for international journey by air. PSF was collected by the appellant on behalf of airport and was also paid to them. Since the appellant is the intermediary between the passenger and the airport authority and is not providing any taxable service with regard to the collection and deposit of the PSF amount, such fee cannot be included in taxable value for payment of service tax. We find that the issue is squarely covered by the decisions relied on by the appellant. The law is well settled that no service tax liability would arise in respect of passenger service fee, being collected by the assessee on behalf of the Airport Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is travelling by air and his baggage is excess than the permitted limit, then he has to pay the excess baggage charges. In these circumstances, the main service provided by the airline is transportation of passenger by air. The excess baggage charges are the integral part of the service of the transportation of passenger by air. 12. Section 65A of the Finance Act, 1994 also deals with the situation which is reproduced hereunder: 65A. Classification of taxable services (1) For the purposes of this Chapter, classification of taxable services shall be determined according to the terms of the sub - clauses of clause (105) of section 65. (2) When for any reason, a taxable service is, prima facie, classifiable under two or more sub - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges is an integral part of the main service provided by the appellants, namely transportation of passenger by air. 7. We also find that the civil appeal filed by Revenue against the decision of the Tribunal in the case of Jet Airways Ltd. etc . has been dismissed by Hon ble Supreme Court, reported in 2016 - TIOL - 210 - SC - ST. Thus, the law is well settled that excess baggage charges collected by the appellant should not be subjected to levy of service tax separately, under any other taxable category. 8. As regards the tickets sold by the appellant prior to the tax liability i.e. 1.5.2006 and used thereafter by the passengers, we find that the appellant is liable to pay tax on the taxable value received from the customers. This Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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