TOURAIDS (I) TRAVEL SERVICES Vs. CCE

JUDGEMENT

(1.) THE Appellant, a sole proprietary concern of Mrs. Usha Jain, a resident of 195, Taj Road, Agra is engaged in providing Tour Operators Service at Agra, Gwalior, Jhansi, Khajuraho and Varanasi and has centralized service tax registration at Agra. The Appellant has entered into contract with various principal tour operators (PTOs), mostly based in Mumbai and Delhi. The PTOs provided the service of package tours to foreign tourists visiting India and the Appellant as per his contracts with the PTOs, provide to the clients of the PTOs i.e. foreign tourist - (a) the service of transport in tourists vehicles without any supplementary services like guide services, monument visit services, porter's services, food services, general assistance services etc., and (b) services of transport in tourist vehicles alongwith the above -mentioned supplementary services.

(2.) Heard both the sides.

(3.) WE have given careful consideration to the submissions from both the sides. The point of dispute in this case is as to whether the so called supplementary services i.e. the services of providing guide services, monument visit services, porter services, food services, general assistance services etc. in connection with tours is covered by the definition of "tour operator's" service and whether the amount received by the Appellant for the supplementary services is liable to service tax. The period of dispute in this case from 01/4/02 to 31/03/07 and the same can be divided into two parts - from 01/4/02 to 09/9/04 and from 10/9/04 to 31/03/07. During the period from 10/9/04 onwards the definition of "tour operator" as given in Section 65(115) of the Act has been amended and as per the amended definition the "tour operator" means "any person engaged in the business of planning, scheduling, organizing or arranging tours (which may include arrangements for accommodation, sight seeing or similar services) by any mode of transport and includes any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under Motor Vehicle Act, 1988 or the Rules made thereunder. Since for this period, the definition of "tour operator" itself covers the activities like arranging accommodation, sight seeing or similar activities, for this period the supplementary services of guide services, monument visit services, porter services, food services, general assistance services etc. would be covered by the definition of tour operator and therefore the amount received by the Appellant for these activities from the PTOs would be liable to service tax.