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TMI Blog2023 (1) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant had launched as specially designed tourist packages and they were also providing similar packages for child passengers, but in this packages, over and above the cost of air ticket they recovered an additional amount charges for the stay, meals and sight-seeing etc. Appellant was also providing air tickets without the above specially designed packages. The Appellant had entered into agreement with certain Airlines under which special price are given for bookings. The Appellant recovered actual ticket fares from the customers but paid only the agreed price to the Airlines, which was much lesser than the ticket cost. The amount paid to the airlines was lesser than the amount charged/collected from the passenger/ tourist for offer pack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... package tour was provided by various Air lines such as Air India as well as Jet Airways itself, i.e. charging only "published air fare" and providing accommodation/ food/ sightseeing on complimentary basis to the passengers, and the consistent judicial view suggest that no service tax is leviable thereon as Tour Operator Service. He placed reliance on the following decisions. * Jet Airways (India) Ltd. - 2016 (3) TMI 164 -CESTAT Mum * Jet Airways (India) Ltd. - 2015 (11) TMI 908 -CESTAT Mum * Air India 2016 (8) TMI 1237 -CESTAT New Delhi 2.1 He further argued that be that as it may, while the appellant had merely undertaken sale of air ticket in the capacity of Air Travel Agent, but even assuming this is amounting to providing tour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... air fare to the Appellant, and the same is also treated as only air fare even for the LTC purpose of the passengers. 2.3 He also submits that the dominant aspect of the transaction, even going by section 65A of the Finance Act, 1994, is sale of air ticket. It is treated as much by air line as also passengers and there is no doubt that hotel stay/food etc. was merely complimentary and secondary. This is akin to providing foods on complimentary basis in airlines, being part of air ticket cost. The food purchased has already suffered appropriate tax in such case and giving it on complimentary basis does not once again invoke Service tax levy. Admittedly, this is not outdoor catering service and for same reasons, complimentary accommodation/f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o argued that the issue can be said to be covered vide the analogy drawn by the Hon'ble Larger Bench in the case of Kaifila Hospitality & Travels Pvt. Ltd. 2021(47)GSTL 140 (Tri. LB). 2.6 He also submits that, whenever the Appellant actually provides tour operator service (other than complimentary accommodation/ food etc.) or where extra amount is charged for the accommodation /food /sightseeing purpose, they had paid applicable service tax under Tour Operator Service during the material period itself. 2.7 Without prejudice to the above he also submits that in any case, even if the charges made in the impugned order are acceptable, for the sake of argument, in such case, appellant are eligible for claiming abatement under Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made there under'. The scope of service was substantially enhanced by the Finance Act (No.2) of 2004 by including " the person who are engaged in planning, scheduling, organizing or arranging tour by wherever means like rail, air, waterway, etc." On a conjoint reading ibid, it reveals that the person providing business of planning, scheduling, organizing or arranging tours should fall under the ambit of taxable category of Tour Operator Service for the purpose of payment of service tax. On perusal of the disputed package features, it is clear that prima-facie appellant is not providing any consultancy in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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