2025-VIL-2142-CESTAT-CHE-ST
  1. Home
  2. 2025-VIL-2142-CESTAT-CHE-ST

SERVICE TAX CESTAT Cases

Service Tax - Air Travel Agent service, Demand of service tax Overriding Commission paid under General Sales Agency Agreement - The terms of remuneration for GSA provided for payment of overriding commission (ORC) by SAL to the appellant - Department issued notice alleging that the services provided by the appellant was Business Auxiliary Services on which the appellant was liable to pay service tax and denied the appellant's claim for exemption from payment of service tax stating that the services were provided within the specified territory in India and not delivered outside India - Whether the appellant's services by way of its activity as the GSA for SAL amounts to export of service and thereby exempted from payment of service tax - HELD - The activity carried out by the appellant under General Sales Agency Agreement, on behalf of a foreign airline amounts to export of service. The overriding commission received by the appellant on account of the services rendered under the GSA Agreement with Sri Lankan Airlines amounts to export of service and is therefore exempted from payment of service tax. The consideration retained by the Indian party under the General Sales Agency Agreement is to avoid two-way traffic of money and therefore it amounts to receipt of convertible foreign exchange. As regards the allegations pertaining to contract fees received, the demand on this count is unsustainable as the SCN has not made any quantification in respect of the same and the demand quantified pertains only to the overriding commission - The impugned order is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?