RAJESH BINDAL, J. - (1.) TAX Appellate Tribunal, New Delhi (for short, 'the Tribunal') in final order Nos. 401 -402/2007, raising following substantial question of law : "Whether the Tribunal's order is contrary to the provisions of r. 6(3) of the Service -tax Rules, 1994 which requires the assessee to fulfill the following conditions for adjustment of the excess service -tax so paid : (i) Service -tax paid has been credited to the Central Government. (ii) Services are not provided to the client by the assessee; and (iii) The value of taxable service along with service -tax has been refunded to the person from whom it was collected."
(2.) BRIEFLY , the facts are that the respondent assessee was carrying on the business of air travel agent. The service 2003 on the commission received from the airlines.
(3.) THE dispute in the present case arose on account of the fact noticed by the Revenue that the assessee had taken suo motu refund of service -tax of Rs. 3,17,661 on account of service -tax already paid in respect of the tickets which were cancelled. In appeal, the Commr.(A) upheld the order passed by the AO. However, the Tribunal accepted the appeal filed by the Central Board of Excise and Customs (for short, 'the Board') and also an order passed in the case of the assessee in Jaipur jurisdiction whereby the claim of refund/adjustment of the service -tax on the cancelled tickets was accepted by the Department. It was noticed in the circular that cancellation or modification of tickets is a common phenomenon and frequent feature in air travel. Details of cancelled or modified tickets are provided by a travel agent in the fortnightly returns filed and adjustment of the commission is made subject to final approval of the airlines. The commission is ultimately paid by the airlines on the net commission received by a travel agent. Accordingly, no question arises for separate claim of refund of service -tax.;