TMI Blog2018 (5) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... ax (Adjn) [2018 (2) TMI 1565 - CESTAT NEW DELHI], where it was held that OMDA does not constitute a franchise in terms of Section 65 (47) of the Finance Act and the transaction between the petitioners and AAI does not constitute a taxable service in terms of section 65 (105 (zze) of the Finance Act, 1994 - appeal allowed - decided in favor of appellant. - Appeal No. ST/52876/2015 –DB , ST/50152/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of air traffic control, and other allied issues. 3. Under a policy decision of the Government of India to privatize the Airports for their better management, the AAI issued request for proposals offering a long term Operations, Management and Development Agreement (OMDA for short) to suitably qualified, experienced and resourced parties to design, construct, operate, maintain, upgrade, moder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant s share came to 45.9%; and in Mumbai 38.7% of the revenue collected. It is the submission of the appellant that sharing was based on gross revenue and not on profit basis. On the gross revenue, service tax was already paid. But the department opined that it is franchise agreement between the parties, so the service tax is leviable. Hence, the Service Tax was demanded by the department along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of India others, where on 14.2.2017, it was observed that 71. Since we have held that OMDA does not constitute a franchise and there is no element of taxable service, we are not examining the issue raised by the petitioners that the annual fee is inclusive of service tax and the liability if any would be that of the AAI and are also not examining that the said issue is a contractual d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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