TMI Blog2018 (9) TMI 1662X X X X Extracts X X X X X X X X Extracts X X X X ..... sions or incentives received for use of Centralized Reservation System - Held that:- There are a number of decisions which have held that the said activity is definitely in the nature of Business Auxiliary Service and consequently, the commissions/incentives received thereon are exigible to service tax liability under that category - reliance placed in the case of New Royal Link Travels and Ors. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, Advocate for the Appellant Shri. R. Subramaniyan , AC (AR) for the Respondent ORDER Per Madhu Mohan Damodhar : After hearing both sides we find that the following two issues are involved : a. Alleged commission received by appellant from M/s. Galileo India Pvt. Ltd. for using the Galileo Centralized Reservation System (CRS): The Department took the view that this act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were confirmed by the Original Authority and upheld by the Commissioner (Appeals). Hence, the appellants are now before this forum. 2. After going through the facts, we find that in respect of commissions or incentives received for use of Centralized Reservation System, there are a number of decisions which have held that the said activity is definitely in the nature of Business Auxiliary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned Order demanding the said amounts. So ordered. 3.1 However, in respect of the demand relating to Money Transfer Services, we find that the Tribunal in Muthoot Fincorp. Ltd. Vs. Commissioner of C. Ex., Visakhapatnam 2010 (17) S.T.R. 303 (Tri. Bang.) relied upon by the Ld. Advocate, wherein appellant was similarly a sub-agent for the Indian representative of Western Union Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ern Union Money Transfer Services through M/s. Kuoni Travels, India, will necessarily have to be treated as Export of Services and hence, the service tax liability of ₹ 2,60,270/- with interest cannot sustain. So ordered. 4. Coming to penalty, we find that both the disputed issues had been mired in litigation and hence, there cannot be any penalty imposable in such situations. This bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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