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Air Travel Agent - Service Tax Aspects

Posted @ March 10, 2014, 10:08 am under (Service Tax Updates)

STO 2013 CESTAT 1022
CCE , Goa
Zuari Travel Corporation
Date of Order: 18/07/2013
5.4 In our considered view, the question before us is also identical. The activity undertaken by
respondent herein, who is a sub-agent of the lATA agent comes under 'Air Travel Agents
Services' or 'Business Auxiliary Services'. The ratio of the decision of the Hon'ble High Court of
Madras in the case of Airlines Agents Association (supra) would squarely apply to the facts of the
present case. If the services rendered by the lATA agent is 'Air Travel Agents Services', the
services rendered by a sub-agent is also the same and it cannot be different from that of 'Air
Travel Agents Services'. In fact, the case laws relied upon by the Revenue do not support the
case of the Revenue at all. In the Sew Construction Ltd. case (supra), the issue for consideration
was whether sub-contractor is liable to pay Service Tax for the services rendered to the
contractor and it was held that sub-contractor is liable to pay Service Tax and the classification of
the service rendered by the sub-contractor is not different and remains the same as services
rendered by the contractor. Similarly, in the case of Vijay Sharma (supra), the question was
whether broker or the sub-broker is liable to pay Service Tax. In that case it was held that subbroker
is liable to pay Service Tax under 'Business Auxiliary Services'. The same logic was
followed in the case of Indfos Industries Ltd. (supra). From these decisions also, it is obvious that
classification of the services rendered by the sub-broker or sub-agent remains the same as that
of main broker.
5.5 Following the ratio of the above cited decisions in the present case also, we hold that the subagent
of lATA agent would also be rendering "Air Travel Agents Services' and not anything else.
STO 2009 CESTAT 1665


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