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November 2013

2013-TIOL-1369-CESTAT-DEL TSC Travel Services Pvt. Ltd. vs. Commissioner of Central Excise, Ludhiana.

By Puloma Dalal, Jayesh Gogri, Mandar Telang, Chartered Accountants
Reading Time 1 mins
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Whether the margin on airline tickets sold to the passengers can be considered as commission and thus liable to service tax under Business Auxiliary Service? Held, No.

Facts: The appellant purchased tickets directly from airlines and sold the same for a margin to its passengers which the department adjudicated as indirect commission and confirmed tax with interest and penalties under the category of “Business Auxiliary Service”.

Held: Considering a prima facie view that the activity of the appellant was nothing but trading activity, the Hon. Tribunal granted full waiver of pre-deposit.

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