COCHIN INTERNATIONAL AIRPORT Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) THIS appeal has been filed against Orders -in -Original No. 3, 4 and 5/2006 ST dated 11.5.2006 passed by the Commissioner of Central Excise and Customs, Cochin.

(2.) THE appellant M/s. Cochin International Airport known as CIAL are providing various services to air passengers and have been registered with the Central Excise department. They collected an amount of Rs. 500/ - from each outgoing international passenger. As the above said amount was not included for payment of Service Tax. Revenue proceeded against them demanding Service Tax amounting to Rs. 57,50,000/ - and Education Cess of Rs. 1,15,000/ -. Interest Under Section 75 of the Finance Act was demanded. Penalty was also proposed. In all, there were three Show Cause Notices covering different periods. The Adjudicating Authority held that the amount collected as 'Users Fee' at the rate of Rs. 500/ - per outgoing international passengers would form part of the assessable value for the purpose of payment of Service Tax on the 'Airport Services'. He held that the said amount is having nexus with the services that were being provided to the passengers. He confirmed the proposals in the Show Cause Notices in the following manner.

(3.) WE have heard the parties. We have gone through the records of the case carefully. The Adjudicating Authority has held that the services rendered by the appellant to the passengers would come under the category of 'Airport Services' and the 'Users Fee' of Rs. 500/ - collected from each outgoing international passenger is includable for assessment of Service Tax.