ST - Tour Operator - Appellant had conducted 'Outbound Tours' of Haj-Umrah to Makkah and Madina - issue squarely covered in favour of appellant by various judicial pronouncements - Activity not taxable: CESTAT
By TIOL News Service
MUMBAI, FEB 11, 2015: SERVICE tax liability is fastened on the appellant under the category of "Tour Operator Services" by the Commissioner of Service Tax, Mumbai.
It is the case of the Revenue that the appellant had conducted "Outbound Tours" of Haj-Umrah to Makkah and Madina, during the material period and did not discharge the service tax liability on the amounts so collected. It is also the case of the Revenue that the said activity is taxable as the amounts collected by the appellants are not in foreign currency and that the recipient of the services are from India.
However, it is the stand of the appellant that the said definition would not apply to the tour operators service, as also the services are consumed abroad, though the recipient are from India.
Before the CESTAT, the appellant submitted that this particular issue was argued before the co-ordinate Bench of this Tribunal in the case of M/s Cox & Kings India Ltd. vs. CST, New Delhi -2013-TIOL-1907-CESTAT-DEL and the law which has been laid down by the Tribunal is that the activity of outbound tours abroad is not taxable under the tour operators services. Further, this ratio has been followed by the Mumbai Bench in the case of Travel Corporation (India) Ltd. Thomas Cook (India) Ltd. vs. CST, Mumbai - 2014-TIOL-1547-CESTAT-MUM and Final Order no. 21303-21306/2014 of Bangalore Bench in the case of Thomas Cook (India) Ltd.
The AR was unable to produce any contrary decision.
The Bench, therefore, observed that since the issue is squarely covered in favour of the appellant in view of the judicial pronouncements, the orders passed by the Commissioner are not sustainable.
The orders were set aside & the appeals were allowed.
In passing:
Also read -
++ Service Tax on Tour operator service in connection with Haj &Umrah pilgrimage [DDT 1231]
++ Service Tax - Haj and Mansarovar get exemption [DDT 2421]
++ Service Tax - the Haj Exemption [DDT 2422]
(See 2015-TIOL-306-CESTAT-MUM)