2026-VIL-398-CESTAT-KOL-ST
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SERVICE TAX CESTAT Cases

Service Tax - Tour Operator Service - The appellant provides promotional schemes to customers which include coupons for hotel stay, transportation to tourist places, and other services for a lump-sum amount, referred to as "tour packages" - Whether the appellant's tour packages fall under the category of "Tour Operator Service" under Section 65(115) of the Finance Act, 1994 – HELD - Based on the Tribunal's earlier decision in the appellant's own case, the tour packages provided by the appellant do not fall under the definition of "Tour Operator Service" as the appellant is not engaged in the business of planning, scheduling, organizing or arranging tours. The appellant is only providing air travel along with certain additional services, but not planning or organizing the tours. Therefore, the appellant is not liable to pay Service Tax under the category of "Tour Operator Service" - However, on the said activity, the appellant has paid Service Tax by availing abatement. Admittedly, the appellant has collected Service Tax from its customers and paid thereof claiming abatement. Thus, the same is not refundable to the appellant - The impugned order qua confirmation of the demand, along with interest and penalties is set aside and the appeal is allowed - Airport Service - The appellant incurred expenses on behalf of its wholly-owned subsidiary AASL and claimed reimbursement - Whether the appellant's services to AASL qualify as "Airport Service" under Section 65(105)(zzm) of the Finance Act, 1994 - HELD - Based on the Tribunal's decision in Soft Touch Aviation case, the definition of "Airport Service" prior to July 1, 2010 required the services to be provided by the airport authority or a person authorized by it. In the present case, the appellant is not authorized by the airport authority to provide the services, and therefore, the appellant's services do not qualify as "Airport Service". Accordingly, the appellant is not liable to pay Service Tax under the category of "Airport Service" - The demand under the category of "Airport Service" is set aside.
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