Import of Service - Sec. 66A - Services of repair and overhaul of aircraft performed wholly abroad - Held not taxable - commission paid to GSA's abroad in relation to business in India Whether service tax applicable u/s. 66A on services of repair and overhaul of aircrafts and in respect of commission paid to GSA's abroad

-Air India Ltd. vs. Commissioner of Service "fax, New Delhi. (2013 (30) STR 458 (Tri-Del))

?

Facts:

The Appellant, a wholly Government of India Company, engaged in the business of transportation of passengers              and goods by air appointed "General Sales Agents" (GSA) who represented them and handled their affairs in other countries for which they received commission. Appellant also received services of repair and overhaul of

aircrafts abroad.

The revenue demanded service tax of Rs. 65 Crores on the said activities along with interest and penalty. According to the Appellant, the repair services were performed abroad and therefore not taxable u/s. 66A of the Finance Act, 1994. In respect of services received from GSA's, the Appellant submitted that since the services were received by the Appellant's branches, the same is not taxable in India and referred to Rajesh Exports Ltd. reported in 2013 (29) STR 147 (Tribunal).