Customs, Excise and Gold Tribunal - Bangalore
P.C. Poulose, Proprietor Of Sparkway ... vs The Commissioner Of Customs And Central ... on 27 November, 2006
ORDER S.L. Peeran, Member (J)
1. The appellant is required to pre-deposit Service Tax of Rs. 1,64,106/-; Educational Cess of Rs. 3,282/- and penalty of Rs. 100/- per day. The appellant was an agent of Airport Authority to collect Airport Admission Ticket charges. They were getting small commission from the Airport Authorities. It is their submission that they were not providing any services to the passengers but they were rendering services to the Airport Authority. The Airport Authority have given a letter dated 31.7.2006 to the appellants stating that they have already paid Service Tax at 10.2% on the amounts collected by the appellant.
2. The learned Counsel submits that Service Tax has been discharged in the matter by the Airport Authority and they are not required to pay any Service Tax for the services rendered by them to the Airport Authority. This activity does not come within the category of 'Airport services'.
3. Heard learned JDR in the matter, who defends the order and submits that this point have already been considered by the Commissioner and they are required to discharge the Service Tax as per the impugned order.
4. On prime facie consideration, we notice that the Airport Authority of India vide their letter dated 31.7.2006 have clarified that Service Tax at 10.2% has been paid on the amounts collected by the appellants. There is no finding recorded on this aspect of the matter by the Commissioner in the impugned order. The appellants are not rendering direct services to the passengers. They have a strong case on merits, hence, the stay application is allowed granting waiver of pre-deposit and staying its recovery. Appeal to come up in its turn.
(Pronounced and dictated in open Court)