Good Wind Travels Pvt. Ltd. v. Commissioner of C. Ex., Ahmedabad

[Order per : M.V. Ravindran, Member (J)]. - This application is filed for waiver of pre-deposit of amount of Rs. 1,34,964/- along with interest and penalties under various Sections.

2. Heard both sides and perused the record.

3. On perusal of record, we find that the issue involved is regarding the service tax liability on the appellant under the category of Business Auxiliary Services for providing facility for passport and visa related work to individuals.

4. After hearing both sides for sometime on stay petition, we find that as the issue lies in a narrow compass and appeal itself can be disposed of. After allowing the stay petition and considering the Board Circular No. 137/6/2011, dated 20-4-2011, we take up the appeal itself for disposal.

5. It is undisputed fact in this case that the appellant is only providing assistance in visa and passport related work to the individuals and if that be so, the Board Circular dated 20-4-2011 will cover the issue in favour of the assessee, which we quote :-

Circular No. 137/6/2011-S.T., dated 20-4-2011

Subject : Assistance provided for processing visa applications - Regarding.

An issue has been brought before the Board, seeding a clarification as to whether service tax liability would arise on the assistance provided by visa facilitators, to individuals directly, for processing of visa applications.

2. The same has been examined. Assistance provided by a visa facilitator, for obtaining visa, to a visa applicant or for foreign employer does not fall within the scope of supply of manpower service. Visa facilitators, while providing visa assistance directly to individuals does not act on behalf of the embassies, as agents of the principal and hence service tax is not leviable within the meaning of business auxiliary service. Also where the assistance is rendered to an individual directly, by a visa facilitator, and the visa applicant pays the service charge on his own (meaning such service charge is not borne by any business entity), the same cannot be considered as support service for business or commerce.

3. Visa facilitators, merely facilitate the procurement of visa and directly assist individuals who intend to travel abroad, to complete the immigration formalities. Visa facilitators collect certain statutory charges like visa fee, certification fee, attestation fee, emigration fee, etc. from the visa applicant, which are remitted to the respective authorities, and in addition collect service charges for themselves as remuneration for the assistance provided by them to obtain the visa. Such a service provided by a visa facilitator, in the form of assistance to individuals directly, to obtain a visa, does not fall under any of the taxable services under section 65(105) of the Finance Act, 1994. Hence service tax is not attracted.

4. However, service tax is leviable on any service provided other than assistance directly to individuals for obtaining visa, falling under the description of any taxable service, as classifiable under the appropriate heading. To cite a few instances, where in addition to rendering assistance directly to individuals for obtaining visa, visa facilitators may also act as agents of recruitment or of foreign employer, in which case, service tax is leviable to the extent under the service of ‘supply of manpower’. In certain other cases, for example, a visa facilitator, may be rendering visa assistance to individuals who are employed in a business entity, but the service charge may be paid by the business entity on behalf of those individuals, to the visa facilitator, in which case, service tax is leviable under ‘business support service’.”

6. In view of the stand taken by the Board that the service rendered by the appellant does not fall under any category of services leviable to service tax, we find that the impugned order is liable to be set aside and we do so. Impugned order is set aside and appeal is allowed.

(Dictated and pronounced in the Court)