TMI Blog2018 (5) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to cargo creates profit on sale and is not a consideration for taxable service. The provisions of Finance Act, 1994 are very clear; it is the service that is taxable and not a money transaction between two entities - Revenue has not been able to establish that the said activity of purchasing seats which have been sold to individual travelers are liable to be covered by the definition of 'business auxiliary service' in section 65(19) of Finance Act, 1994. Appeal dismissed - decided against Revenue. - APPEAL NOS: ST/90034 & 90035/2014, CROSS-OBJECTION NO: ST/CO-91145/2015 - A/85947-85948/2018 - Dated:- 2-4-2018 - Shri S K Mohanty, Member (Judicial) And Shri C J Mathew, Member (Technical) Shri Dilip Shinde, Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to discharge tax liability of ₹ 1,06,147/- as provider of 'business auxiliary service'. According to the impugned order, the statements of the proprietor of the respondent-entity was the sole support to the allegation and that lack further documentary or oral corroboration as well substantiation of the computation of the tax liability rendered the demand to be not tenable. Relying upon the decision of the Tribunal in Vikram Overseas v. Commissioner of Central Excise [2000 (204) ELT 108 (Tri.)], Commissioner of Central Excise, Coimbatore v. Sangamitra Cotton Wills (P) Ltd [2004 (163) ELT 472 (Tri.Chennai) and Rochees Watches Ltd v. Commissioner of Central Excise, Jaipur [2006 (197) ELT 218 (Tri.Del.)] recovery of tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst appellate authority who has dropped the entire demand on the ground that the transaction sought to be taxed was not be covered with the scope of 'commission agency' thus allowing the appeal filed by M/S Jasper International against partial recovery. 4. It is the contention of Learned Authorised Representative that the circular issued by the Central Board of Excise and Customs, which was relied by the first appellate authority, is not binding in view of a contrary position in law; according to him, the want of exemption notification between 1 st March 2003 to 19 th November 2003 could not be bridged by a mere circular and for this reliance was placed on the decision of the Hon'ble Supreme Court in Commissioner of Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that has been rendered; the original authority had failed to do so. The decision of the Tribunal in re Patel Air Freight resolved the issue of taxability of commission received at IATA rates with the airlines charging freight on the appellant who, in turn, charged such from its customers and the appellant was compensated by bulk payment as incentive. The said decision has distinguished the decision of the Hon'ble High Court of Madras in Airlines Agents Association v. Union of India [2006 (3) STR 3 (Mad.)] wherein the dispute centered around the recipient of the service. In the present matter, the respondent made bulk purchases of air tickets that were then assigned at market price to various successful candidates proceeding abroad. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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