TMI Blog2023 (3) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... for achieving targets cannot termed as consideration and, therefore, are not leviable to service tax under Section 67 of the Finance Act. The view expressed by the Larger Bench in Kafila Hospitality was subsequently followed by a Division Bench of the Tribunal in M/S. ASVEEN AIR TRAVELS (P) LTD. VERSUS COMMISSIONER OF GST CENTRAL EXCISE, CHENNAI [ 2022 (4) TMI 1035 - CESTAT CHENNAI] . It has, therefore, to be held that the Commissioner (Appeals) committed an error in confirming the demand of service tax on the amount received by the appellant from the companies. The order dated December 26, 2017 passed by the Commissioner (Appeals) in so far as it confirms the demand of service tax in respect of the amount received by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt would be exigible to service tax under business auxiliary service . 3. The appellant is also engaged in providing service to M/s. Paul Merchants Ltd. in relation to remittance of money by Western Union from the customers located abroad to a person residing in India. The appellant has been paid commission by Paul Merchants for such transactions. The Adjudicating Authority has held that this amount would be exigible to service tax under business auxiliary service . 4. The period involved is from October 2009 to March 2015. 5. The two issues that arose before the Commissioner (Appeals) was as to whether the amount received by the appellant for using CRS would be leviable to service tax under business auxiliary service and whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reference in the following manner; 48. The contention of the Department is that the target based incentive paid by airlines to IATA agents and the CRS incentive paid by the CRS Companies to IATA agents or the sub-agents are for promoting and marketing the business of the airlines and CRS companies respectively and so are leviable to service tax under the category of BAS. Xxxx xxxx xxxx 59. As noticed above, the CRS Companies provide online portal through which the travel agents book the tickets of various airlines for the passengers. The contention of the appellant/interveners is that the use of CRS software is to enhance the business of the travel agents, while that of the Department is that the travel agents promote the serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified as three parties are identifiable, namely, the CRS Company, travel agent and a passenger. 67. The passenger cannot be deemed to be an audience for promotion of the business of CRS Companies, for the passenger can neither book directly through a CRS Company nor can a passenger be influenced by any travel agent to book through a particular CRS Company. xxxx xxxx xxxx 72. The contention advanced by Learned Counsel of the interveners is that incentives cannot be construed as consideration and if it is so, no service tax can be levied on this amount because under Section 67 of the Finance Act, service tax is leviable on consideration , which is the gross amount charged by the service provider for rendering a particular taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission received would fall under BAS . The decision also does not specify the particular sub-clause of Section 65(19) of the Finance Act that defines 'BAS . It also needs to be noted that on behalf of the appellant it was contented that no marketing or promotion was conducted by the appellant since it is the choice of the appellant to choose a particular CRS Company and that the customer also does not even know under which CRS system the ticket was booked, but there is no discussion on this aspect nor is there any discussion on the submission of the appellant that the amount received from the CRS Companies cannot be treated as deemed commission since it was merely an incentive and did not attract service tax. 11. The conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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