TaxTMI 
TaxTMI 
2024 (12) TMI 1137
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....the present adjudication, succinctly, are as follows: The appellants are engaged in providing Taxable Services of 'Tour Operator', 'Travel Agent', 'Air Travel Agent', 'Rail Travel Agent', ' Renting of Cab'. After risk assessment profiling of the appellant, during the course of the audit, the department observed that the appellants were not paying service tax on following: (i) Outbound tours of Rs. 10,58,320/- calculated on the taxable value amounting to Rs. 2, 95, 98, 253/-which was collected by the Appellants from the passengers in respect of outbound tours sold during the period 10.09. 2004 to 31.03.2009. (ii) On account of Exemption under notification number 21/ 2003-ST dated 20.11.2003 being wrongly availed by the Appellants during t....
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....sed. The said proposal was confirmed vide Order-in-Original No. 30/2010 dated 23.09.2010. Appeal against the said order has been rejected vide the impugned order-in-appeal. Being aggrieved, the appellant is before this Tribunal. 4. We have heard Shri R. Krishnan, Advocate for the appellant and Ms. Jayakumari, AR for the respondent. 5. Learned counsel for the appellant has submitted that the demand vide the impugned show cause notice has been raised on five separate grounds. The issue of service tax with respect to the tour services provided to foreign tourist to travel in India exclusively or partly in India since amounts to export of service in terms of Rule 3(2) of Export of Service Rules, 2006 that the demand is liable to be set-aside.....
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....ndia to the customers also based in India, hence, the services are liable to tax. The same decision of M/s Cox & Kings Limited (supra) is relied upon the learned DR to impress upon the liability of the appellant vis-à-vis the domestic tours. 7. Having heard the rival contentions and perusing the entire records. We frame following issues to be adjudicated:- (i) Whether appellant is liable to pay tax on outbound tours and for in bound tours being provided to foreign travelers (ii) Whether the appellant is entitled to pay service tax on domestic outbound tours (iii) Whether the service tax is to be paid by the appellant on the amount received as web design charges. Issue No. 1:- The service tax on this activity has been demand....
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....s vs. UOI reported as 2007 (7) STR 625 (SC) clarified that the service tax is indirect tax levied on specified services provided by certain categories of person including by a company, association firm, body of individual etc. and that it is a value added tax which is a destination based consumption tax, in the sense that it is on commercial activities and not a charge on business but on the consumer and logically be leviable only on services provided within the country and that performance based services are provided by service provider including tour operators. This principle has subsequently also been reiterating by Hon'ble Apex Court in the case Association of Leasing and Financial Service Companies vs. Union of India reported as 2011 ....
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....sp;15.05.2008 16.05.2008 TO 30.06.2012 Tour operator means a person who holds a tourist permit granted under the rules made under the Motor Vehicles Act, 1988. Tour operator means 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 thereunder. Tour operator mean any person engaged in the business of planning, scheduling, 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 permi....
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....will be leviable only on services rendered for tours within India. Separate billing has to be done by the tour operators for services provided in respect of tours within India. The order under challenge confirming the demand on inbound tours, is therefore, upheld. Issue No. 3 The Department has treated the web domain charges to have been received against rendering intellectual property services, we observe that the intellectual property right service has been defined under Section 65 (55a) of Finance Act 1994 to mean any right to intangible property, namely, trademarks, design, patent or any other intangible property under any law for the time being in forced. The term trademark is defined under clause 2(b) of Section 2 of Trade Marks Act....