9911796707
TMI Blog2021 (10) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... xtended period of limitation contemplated under the proviso to section 73(1) of the Finance Act, 1994 [the Finance Act]. 2. A Division Bench of the Tribunal, while hearing this appeal expressed doubts on the view taken by another Division Bench of the Tribunal in D. Pauls Consumer Benefit Ltd. vs. Commissioner of Central Excise, New Delhi [2017 (52) STR 429 (Tri. - Delhi)] and accordingly, referred the matter to a Larger bench of the Tribunal for determination of the following six issues: "(i) whether the Incentive received by service receiver from service provider, on appreciable performance, can be subjected to service tax? (ii) whether a demand can be confirmed without specifying the sub clause of BAS under which the activities are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Companies provide an online portal for booking of tickets offered by various airlines. They enter into agreements with airlines for rendering 'online information data access and retrieval' [OIDAR] services, wherein they collate data such as ticket availability, price, duration of journey, etc, for access by subscribers. CRS Companies also enter into subscriber agreements with IATA agents wherein the IATA Agents are permitted to use the data base available on the portal for booking of airline tickets for passengers/sub-agents. Sub-agents can also purchase airline tickets from the IATA agents for their customers (passengers). The passengers are the ultimate recipient of air travel services. 4. IATA agents are persons who have been authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Amadeus India Private Limited, Interglobe Technology Quotient Pvt. Ltd. and Abacus India. 6. A show cause notice dated October 21, 2011 covering the period 2005-06 to 2009-10 was issued to the appellant as the Department sought to levy service tax on the following :- (i) Target based incentives paid to the travel agents, under the category of 'business auxiliary service' ('BAS') by alleging that the travel agents are promoting and marketing the business of the airlines; and (ii) CRS commission paid by the CRS Companies to travel agents under the category of BAS by alleging that the travel agents are promoting and marketing the business of the CRS Companies. 7. The Commissioner, while adjudicating the show cause notice, noted that tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot alter the situation for M/s Amadeus & Galileo M/s Abacus as by increased use of CRS in booking the air tickets etc., the interest of M/s Amadeus & Galileo are also promoted. Therefore, there is no iota of doubt that the notice has promoted the business of M/s Amadeus. Galileo and M/s Abacus by using their CRS & received the commission against such promotional activity during the period under dispute which is appropriately covered and taxable under "Business Auxiliary Serices" as defined in Section 65(19)(ii) as "Promotion or marketing of service provided by the client; or" read with section 65(105)(zzb) of the Act and I hold it accordingly." 9. In regard to the second issue, the Commissioner recorded the following findings :- "23. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airlines; (ii) the air travel agent is not promoting the business of the CRS companies; (iii) in any view of the matter, the classification of the service would fall under "air travel agent" service and not "BAS" in terms of the provisions of Section 65A of the Finance Act; and (iv) the incentives paid for achieving the targets are not leviable to service tax." 13. Thereafter, in paragraph 86, the answer to the six issues has been given in the following manner: "86. In the light of the aforesaid discussion and findings, the answers to the six issues that have been referred to the Larger Bench are as follows: First issue : the incentives received by a service recipient from a service provider cannot be subjected to levy of service ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
