Custom, Excise & Service Tax Tribunal
M/S. Ind Trust Travels And Cargo (P) Ltd vs Commissioner Of Service Tax, Chennai on 6 March, 2018
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. ST/747/2010
(Arising out of Order-in-Appeal No. 160/2010 (MST) dated 27.8.2010 passed by the Commissioner of Central Excise (Appeals), Chennai)
M/s. Ind Trust Travels and Cargo (P) Ltd. Appellant
Vs.
Commissioner of Service Tax, Chennai Respondent
Appearance Ms. Cynduja Crishnan, Advocate for the Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent CORAM Honble Ms. Sulekha Beevi C.S., Member (Judicial) Honble Shri Madhu Mohan Damodhar, Member (Technical) Date of Hearing / Decision: 06.03.2018 Final Order No. 40578 / 2018 Per Bench Brief facts are that the appellant who is an air travel agent is registered with the Service Tax Department under the category of Air Travel Agency Service. During the audit, it was noticed that the appellant had received commission from non-IATA airlines and also had received commission from M/s.Amadeus India Private Ltd, New Delhi for booking of tickets through the Computerized Reservation Booking. For booking the tickets through Amadeus software the appellant earned commission / incentive from Amadeus. They had not discharged service tax liability on the said incentive received by them although the activity of appellant was promotion or marketing of the services falling under Business Auxiliary Services. Show cause notice was issued proposing to demand service tax along with interest for the period April 2006 to January 2008 and for imposing penalty. After due process of law, the original authority confirmed the demand, interest and imposed penalty. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal.
2. On behalf of the appellant, ld. counsel Ms. Cynduja Crishnan fairly submitted that the issue whether the appellant is liable to pay service tax on the incentive received for use of the Amadeus Software for booking tickets is settled against the assessee by the Tribunal vide Final Order No.40506 to 40509/2018 dated 27.2.2018 in the case of New Royal Link Travels & Ors. Vs. Commissioner of Service Tax, Chennai.
3. The ld. AR Shri K.P. Muralidharan reiterated the findings in the impugned order.
4. Heard both sides.
5. The issue stands covered against the assessee by the decision of the Tribunal in the case of M/s. New Royal Link Travels cited supra wherein the Tribunal has followed the decision in the case D. Pauls Consumer Benefit Ltd. Vs. Commissioner of Central Excise, New Delhi 2017 (52) STR 429. Hence we do not find any grounds to interfere with the order passed by the Commissioner (Appeals) upholding the demand or interest. However, the ld. counsel pleaded to set aside the penalty and has referred to the above decision passed by the Tribunal, wherein the Tribunal had set aside the penalty imposed. Following the same, we are of the view that impugned order is modified to the extent of setting aside the penalty imposed only without disturbing the demand or interest thereof. The appeal is partly allowed in the above terms with consequential relief, if any.
(Operative portion of the order was
pronounced in open court)
(Madhu Mohan Damodhar) (Sulekha Beevi C.S.)
Member (Technical) Member (Judicial)
Rex
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