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Custom, Excise & Service Tax Tribunal

M/S Jetlite (India) Ltd vs C.S.T.-Delhi on 25 October, 2016

        

 
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
R.K. PURAM, WEST BLOCK NO. 2, NEW DELHI-110066

				DIVISION BENCH
						Date of hearing: 25/10/2016
			Appeal No. ST/425/2010
[Arising out of Order-in-Original C. No. IV(16) Hqrs/Adj/Jetlite/181/ST/07 dated 17/12/2009 passed by the Commissioner of  Central Excise(Adjudication),  New Delhi]

M/s Jetlite (India) Ltd.		Appellant
	Vs.	
C.S.T.-Delhi						Respondent

Appearance: Shri Udit Jain, Advocate for the Appellant.

Shri Sanjay Jain, DR for the Respondent Coram: Honble Mrs. Archana Wadhwa, Member (Judicial) Honble Shri Ashok K. Arya, Member (Technical) FINAL ORDER NO. 54784/2016 Per: Ashok K. Arya The appellant viz. M/s Jetlite (India) Ltd. is in appeal against the order passed by Commissioner (Appeals), New Delhi, whereunder the liability of service tax under the category of service of transport of goods by air as defined under Section 65 (105) (zzn) of the Finance Act, 1994 has been confirmed.

2. The ld. Advocate, Shri Udit Jain represented the Appellant and ld. D.R., Shri Sanjay Jain, represented the Revenue.

3. The matter concerns with the chargeability of service tax on the amount collected from passengers as charges for transportation of their excess baggage by the appellant Airline during the period of 10.9.2004 to 13.09.2006, when the service of Transportation of Passengers by Air was not under taxable category. The appellant cites the decision of CESTAT in the case of Kingfisher Airlines Ltd. Vs. Commissioner of Service Tax, Mumbai 2015 (40) S.T.R. 1159 (Tri.-Mumbai) saying that carrying of baggage, including excess baggage by Airlines is integral part of transportation of passengers by Air and an incidental activity of main service; there is no element of transport of unaccompanied goods under this service. The appellant also submits that they are in the business of transport of passengers by air and transport of baggage is allowed as per the policy/tariffs fixed as a facility. The ld. A.R. for the Revenue has reiterated the findings given in the impugned order.

4. After consideration of the facts and the submissions of both sides, we are of the considered view that carrying excess baggage on payment of certain fee/tariffs for the passengers who have opted to use air services of the appellant is an integral part of the main service provided by the appellant. The incidental service of transportation of excess baggage by air cannot be charged service tax under the category of service of transportation of goods by air as defined under Section 65 (105) (zzn) of the Finance Act, 1994, CESTAT Mumbai in the case Kingfisher Airlines Ltd. Vs. Commissioner of Service Tax, Mumbai (supra) in the Majority Order in this regard holds as below:

28.  (1) The excess baggage charges collected by the appellants are an integral part of the main service namely transportation of passengers by air. Therefore, the demand of service tax is set aside

		(Dictated and pronounced in the open Court)


(ARCHANA WADHWA)		    		      (ASHOK K. ARYA)
MEMBER (JUDICIAL)		 	      MEMBER (TECHNICAL)



K. Gupta


















ST/425/2010-ST(DB)
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