9911796707
TMI Blog2023 (4) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... (7) of the Service Tax Rules, 1994. It is a matter of record that the appellant had received commission from Air India-Indian Airlines, Kingfisher and Jet Airways @ 3% on the basic fare and on surcharges levied and retained by such airlines on all tickets sold in India, which included fuel surcharge. 2.1 Entertaining a doubt that the appellant did not include the amount of fuel surcharge received by it in the 'basic fare', a Show Cause Notice dated 19.06.2009 came to be issued thereby proposing to demand Service Tax on the commission received on the fuel surcharge for the period from December 2008 to February 2009, along with applicable interest and penalty. 2.2 The appellant appears to have filed a detailed reply justifying its stand as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of domestic bookings, and at the rate of 1.2% of the basic fare in the case of international bookings, of passage for travel by air, during any calendar month or quarter, as the case may be, towards the discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the Act and the option, once exercised, shall apply uniformly in respect of all the bookings of passage for travel by air made by him and shall not be changed during a financial year under any circumstances. Explanation. - For the purposes of this sub-rule, the expression "basic fare" means that part of the air fare on which commission is normally paid to the air travel agent by the airline." (Emphasis supplied in bold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fare on which the commission was being paid, but this plea has not been considered by the Commissioner. ..." (Emphasis supplied in bold by us) 7.2 In the case of M/s. Akbar Travels of India Pvt. Ltd. (supra), the Principal Bench has, after following the order in M/s. Kafila Hospitality and Travels Ltd. (supra), chosen to remit the matter back to the file of the Principal Commissioner for passing a fresh order since the Bench was satisfied that the Principal Commissioner had not considered the contentions of the appellant therein that that the commission on fuel surcharge was not paid normally to the Air Travel Agents by the Airlines. 7.3 In the case of M/s. Japan Airlines International Company Ltd. (supra), the co-ordinate Delhi Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. (supra) is not applicable. 9. An airline may pay commission inter alia on various items, apart from the basic fare, which are indicated clearly in the ticket issued to a traveller. The basic fare is clearly indicated, followed by various other charges in such ticket. Hence, in our view, when the basic fare is so specifically indicated, the authorities cannot add or delete anything to the same to say that the basic fare should also include those other things. 9.2 Rule 6 (7) has to be read, therefore, in the context of the break-ups given in the ticket wherein the basic fare stands clearly indicated and viewed thus, the interpretation drawn by the lower authorities to include the commission on fuel surcharge in the basic fare cannot hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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