Service Tax - BAS - Promoting Real Estate in the Air - Jetlite Case in SC
THIS case, as they say, had a chequered history – in a short span of time. It all started with a Show Cause Notice dated 28.10.2008. The issue was displaying logo of Sahara Corporation in the Boarding Pass of the then Sahara Airlines, which later became JETLITE. The Department was of the view that this was Business Auxiliary Service and tax was payable. The learned Commissioner confirmed the demand of about Rs. 129 Crores with an equal amount of penalty with attendant interest.
On appeal to the tribunal, the Tribunal ordered pre-deposit of Rs. 100 Crores - 2010-TIOL-854-CESTAT-DEL.
Naturally, the assessee rushed to the High Court. The High Court by an order dated 20.08.2010 directed payment of cash of Rs. 60 Crores and a bank guarantee of Rs. 10 Crores and directed the Tribunal to decide the appeal by the end of November. The assessee appealed to the Supreme Court, but did not get any relief.
The Tribunal finally decided the appeal on 20.12.2010, holding that no Service Tax was payable. -
Now the revenue has taken this high value high rated case to the Supreme Court.
Yesterday the Supreme Court adjourned the case for two weeks for Revenue to decide whether the appeal lies to the High Court or Supreme Court.