Custom, Excise & Service Tax Tribunal
M/S Lufthansa German Airlines vs Cst, Delhi on 28 April, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL West Block No. 2, R.K. Puram, New Delhi 110 066. Principal Bench, New Delhi COURT NO. IV DATE OF HEARING : 28/04/2016. DATE OF DECISION : 28/04/2016. Service Tax Appeal No. 54026 of 2014 [Arising out of the Order-in-Original No. 15/AKJ/2014 dated 30/05/2014 passed by The Commissioner, Service Tax, New Delhi.] For Approval and signature : Honble Ms. Archana Wadhwa, Member (Judicial) Honble Shri B. Ravichandran, Member (Technical) 1. Whether Press Reporters may be allowed to see :No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? 2. Whether it would be released under Rule 27 of : the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? 3. Whether their Lordships wish to see the fair :Seen copy of the order? 4. Whether order is to be circulated to the :Yes Department Authorities? M/s Lufthansa German Airlines Appellant Versus CST, Delhi Respondent
Appearance Shri Tarun Jain, Advocate for the appellant.
Shri Rajeev Gupta, Authorized Representative (Jt. CDR) for the Respondent.
CORAM : Honble Ms. Archana Wadhwa, Member (Judicial) Honble Shri B. Ravichandran, Member (Technical) Final Order No. 51351/2016 Dated : 28/04/2016 Per. Archana Wadhwa :-
The appellant is engaged in providing transport of passengers services by Air embarking in India for International Journey and were duly registered with the Service Tax Department for payment of service tax. As the appellant were issuing tickets for the air journey to be undertaken by their customers, the said tickets also reflected the passenger service fee and the airport tax, which was being collected by the appellant from their customers and were being further deposited by them to the respective Government Authorities.
2. The dispute arose as regards valuation of the services. By entertaining a view that the appellant is required to include the airport tax and passenger service fee in the assessable value of the services being provided by them, proceedings were initiated resulting in passing of the present impugned order confirming service tax alongwith confirmation of interest and imposition of penalties.
3. Hence the present appeal.
4. Both sides agree that the issue stands covered by the Tribunal decision in the case of M/s Continental Airlines Inc. vs. CST, New Delhi reported as 2015 TIOL 1481 CESTAT DEL.. Its stand held that the airport taxes as also the passenger service fees collected by the airlines on behalf of the airports and paid to them are not includable in the assessable value for the purpose of levy of service tax. By following the said decision of the Tribunal, the service tax demand against the present assessee for the earlier period raised on the same grounds was set aside by the Tribunal in the case reported as Lufthansa German Airlines vs. CST (Adjn.), New Delhi reported as 2016 VIL 274 CESTAT DEL ST.
5. In as much as the issue is decided, we set aside the impugned order and allow the appeal with consequential relief to the appellant.
(Operative part of the order pronounced in the open court.) (Archana Wadhwa) Member (Judicial) (B. Ravichandran) Member (Technical) PK ??
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