TMI Blog2023 (1) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... the category of Air Travels Agent Service however appellant are liable for payment of Service tax on the total value of ticket which includes the cost of package tour provided by Appellant under the category of Tour operator Service . The Tour Operator has been defined under Section 65(115) ibid to mean any person engaged in the business of planning, organizing or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the 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 enhance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ator and Travel Agent. On scrutiny of the documents records seized/received/collected from the Appellant and from the statement of Director of Appellant, it was observed by the department that appellant 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present appeal before this Tribunal.. 2. Shri. Saurabh Dixit, learned Counsel appearing for the appellant submits that the issue in hand is no more res-integra inasmuch as identical so-called 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cher to the passengers, who could present such voucher and avail benefit of complimentary accommodation, food, sightseeing etc. to the extent extended to them. Still, the passengers pay only for the published 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the following decisions. ASL Motors Pvt. Ltd. 2008 (9) STR 356 (Tri.- Kolkata) K.P. Automobiles Pvt. Ltd. 2009 (13) STR 389 (Tri. Del) Kiran Motors Ltd. 2009 (16) STR 74 (Tri. Ahmd) 2.5 He also 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 prejudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson engaged in the business of planning, organizing or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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