Whether the amendment in definition of "Tour Operator" u/s. 65(115) by Finance (No.2) Act,2004, enlarging its scope to include other supplementary services like 'planning', 'scheduling' etc. is only clarificatory and hence includible in value of taxable services provided prior to 10-09-2004 also?

Touraids   (I)  Travel  Services  vs. Commissioner of Central   Excise. (Allahabad) [2014] 48 taxmann.com 235

 

  

 

FACTS:

The Assessee,  a tour operator,  entered  into a contract with various Principal Tour Operators (,PTO'), for providing transportation  services by tourist vehicle and paid service tax only on transportation  charges  received  by claiming an exemption  up to 60%  of the gross  amount  charged vide Notification No. 39/97 -ST for providing package tour. No service tax was paid on the supplementary  services provided  of Air  and  Railway  Ticket  booking,  food  and lodging, guide services  etc. contending  that these were incurred on behalf of the PTOs for which reimbursement was made on actual basis and that the definition of "Tour operator"   including  such  services  was  amended  with effect from  10-09-2004.  The Tribunal  upheld the levy of service tax holding that treating entire tour contract as a package proves that he was fully aware that in a package tour, supplementary  services  are also included.  Hence, this appeal was filed.

 

HELD:

From  a  combined   reading   of  definitions   of  "taxable service" in 65(105)(n)  and "tour operator" u/s. 65(115), it is clear that the former definition is wide and includes all the services rendered relating to tour. While determining the scope of taxable service, it was held that, the phrase "in relation  to" the tour  means "in the aid of tour"  also. Circular  No.  F.B.43/10/97-TRU,    dated    22-08-1997