2025-VIL-971-CESTAT-DEL-ST
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SERVICE TAX CESTAT Cases

Service Tax – Larger Bench - Online Information and Database Access or Retrieval (OIDAR) Services, Computer Reservation System (CRS) Companies - Non-payment of service tax on a reverse charge basis on payments made by the appellant to CRS companies - Whether the services provided by CRS companies to the appellant would be taxable under the category of OIDAR services on a Reverse Charge basis – HELD - The expression “providing data/information” in the context of OIDAR service would mean to supply such data/information which was previously not available to the service recipient. The ownership of data is relevant for deciding the taxability of OIDAR services - In the present case, the data or information belonged to the appellant and the CRS companies did not provide any data or information to the appellant. The purpose of the agreement between the appellant and the CRS companies was to enable seamless booking of the appellant's flight tickets through subscribed travel agents across the world and not to receive any data or information – The entire data base of the CRS Companies has been created by accessing information from the appellant and other various airlines. The appellant only intended to use the infrastructure set up by the CRS Companies to facilitate a better booking mechanism for travel agents. The CRS Companies were only obliged to ensure that the information of the appellant could reach the travel agents on real time basis. Thus, the transaction between the appellant and the CRS Companies cannot be treated as provision of OIDAR service by the CRS Companies to the appellant - The decisions in British Airways vs. Commissioner of Central Excise (Adjudication), Delhi and Jet Airways (I) Ltd. vs. Commissioner of Service Tax, Mumbai, which had held the services provided by CRS companies to be taxable under OIDAR services, did not consider the ratio of the decision in United Telecom and were, therefore, not applicable to the present case - The decision in United Telecom lays down the correct position of law, and the services provided by CRS companies to the appellant would not be taxable under the category of OIDAR services – The reference to Larger Bench is answered accordingly
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