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Akbar Travels India Pvt. Ltd V/S Commissioner of C. Ex., Lucknow

    Final Order No. ST/A/70165/2018-CU(DB) in Appeal No. ST/321/2012-CU(DB)

    Decided On, 09 January 2018

    At, Customs Excise Service Tax Appellate Tribunal Regional Bench, Allahabad

    By, MEMBER

    For Respondents: Gyanendra Kr. Tripathi, Assistant Commissioner (AR)

Judgment Text

1. The present appeal is directed against Order-in-Appeal No. 413/ST/LKO/2011, dated 8-12-2011 passed by Commissioner of Customs, Central Excise & Service Tax (Appeals), Lucknow. The appellant has submitted request for adjournment. After rejecting the request for adjournment the appeal is taken up for decision. The short point involved in the appeal is whether the service provider who has discharged his service tax liability as provided under sub-rule (7) of Rule 6 of Service Tax Rules, 1994, is required to pay service tax on the incentive received from Airline.

2. Heard the Learned AR and perused the records.

3. On perusal of records, we find that the appellant was registered in the category of Air Travel Agent. Air Travel Agent is defined as a person engaged in providing any service connected with he booking of passage for travel by air. The appellant discharged his service tax liability as provided under sub-rule (7) of Rule 6 of Service Tax Rules, 1994. The appellant received some incentives from the Airlines. Considering the said incentive to be consideration required to be included in the total consideration received for the purpose of assessment, the appellant was issued with a show cause notice dated 7-5-2010 which culminated into the passing of impugned Order-in-Appeal. The Original authority has dropped the demand holding that the appellant had exercised option not to pay tax on commission at the rates specified in Section 66 of the Act and they were paying service tax according to option available under Rule 6(7) of Service Tax Rules, 1994 on the basic fare value of the Air Ticket at rates specified in the said Rule. The said finding was set aside by the Learned Commissioner (Appeals) in the impugned Order-in-Appeal. We find that the view taken by the original authority, as recorded hereinabove is sustainable in law. Therefore, we set

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aside the Order-in-Appeal and uphold and restore the Order-in-Original No. 39/STC/A.C./LKO/Div-1/2010-11, dated 30-12-2010 and allow the appeal filed by the appellant. (Pronounced in Court on 9-1-2018)