CESTAT, Bangalore Bench

P.C. Poulose

v.

Commissioner of Customs & Central Excise (Appeals), Cochin

Dr. S.L. Peeran, Judicial Member

and T.K. Jayaraman, Technical Member

Final Order No. 50/2008

Appeal No. st/misc./328/2006 in ST/259/2006

January 17, 2008

Airport Service

Section 65 of the Finance Act, 1994 - Airport service - In terms of a contract between assessee and Airport Authority of India (AAI), assessee was authorized to collect entrance fee from visitors for entering lounge and availing various facilities - Lower authorities considering services rendered by assessee amounted to ‘airport service’, demanded service tax along with interest and penalty - Whether merely because assessee was authorized to collect fee and remit it to Airport Authority of India, it could not be said that service was provided by assessee - Held, yes - Whether liability rested only with AAI who was actually providing services - Held, yes - Whether, therefore, there was no merit in demand and penalty - Held, yes

Ms. Rukmani Menon for the Appellant. K. Sambi Reddy for the Respondent.

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