ST - Excess baggage charges collected by Airlines are an integral part of main service, namely, transportation of passengers by air - SC Dismisses Revenue Appeal
CARRYING of baggage by the appellant Airlines is incidental to the service being 'transport of passengers by Air' and the same is classifiable under Section 65(105)(zzn). There is no separate contract in the facts of the case for transport of goods (excess baggage). More particularly, in the case of agreement of transport of passengers by Air, there is no element of transport of unaccompanied goods. Thus, the excess baggage charges collected by the appellant Airlines is integral part of the service provided for 'transport of passengers by Air'. CESTAT in 2015-TIOL-2329-CESTAT-MUM.
The Supreme Court recently dismissed the Revenue Appeal against this decision.
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