TMI Blog2019 (2) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... L Mahar, Member (Technical) Shri Sanjeev Jain, Shri Anil Makhija, Advocates for the Appellants Shri R K Majhi, AR for the Respondent ORDER Per: C L Mahar: Brief facts of the matter are that the appellants are engaged in the business of operating airlines services and providing the service of Transport of passengers embarked in India for domestic journey or international journey by air services to their clients and they are registered with the service tax department under the category of goods transport agency service, Business Auxiliary service and transport of passenger by air service. The department was of the view that the appellants were not paying service tax on the gross amount received by them from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l record. We note that on the issue of tax liability on the charges collected by the airlines as PSF and other taxes, the Tribunal had occasion to examine the same issue in respect of various international airlines. As rightly pointed out by the appellants that in the case of Continental Airlines order dated 02/07/2015 (2015 TIOL 1481 CESTAT DEL), Lufthansa Airlines, order dated 31/03/2016 , KLM Royal Dutch Airlines order dated 04/08/2016, United Airlines order dated 06/12/2016 (2016 TIOL 2539 CESTAT DEL.) and Austrian Airlines order dated 21/07/2017 the Tribunal held against the inclusion of these charges in the taxable value for air travel service by the appellants. The Tribunal in the case of Austrian Airlines observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices, amenities given to the passengers, etc. In effect, these charges are with reference to facilities provided by the Airport Authority to the operators of Airlines in connection with their operation or to the passenger, which in any case, is also relatable to their travel. In other words, the persons availing the facilities in airports are the passengers, who are in the process of either inward or outward air travel. The appellants are issuing tickets for such air travel, which in any case, cannot be performed unless the passengers enter and passes through the airports. 8. The Airport Authority fixed certain charges as passenger service fee. This is apparently for the services rendered to the passengers in the airport. The passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the appellant, the reasons, which are not forming part of the proceedings before the lower authorities, cannot be taken up afresh for factual verification, at this stage. However, it is open to the Original Authority to verify the records in order to satisfy that the service tax attributable to the PSF has in fact been remitted to the Government. 11. In view of the above discussions and analysis and following the decision of this Tribunal in the appellant s own case vide Final Order dated 11.08.2016 and various other decisions on similar set of facts, we hold that the impugned order is not sustainable. Accordingly, the same is set aside. The appeals are allowed . 4. Since the facts of the matter in hand are similar to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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