Case Details: Additional Director General, Directorate General of GST Intelligence Versus Make My Trip (India) Pvt. Ltd. (2025) 32 Centax 2 (S.C.)
Judiciary and Counsel Details
- Abhay S. Oka & Ujjal Bhuyan, JJ.
- S/Shri N. Venkataraman, A.S.G., V.C. Bharathi, Udai Khanna, Amit Sharma-II, Ishaan Sharma, Annirudh Sharma-II, Advs. & Gurmeet Singh Makker, AOR, for the Appellant.
- S/Shri V. Lakshmikumaran, Yogendra Aldak, Kunal Kapoor, Ms Neha Choudhary, Ms Umang Motiyani, Ayush Agarwal, Ms Falguni Gupta, Advs. & Ms Charanya Lakshmikumaran, AOR, for the Respondent.
Facts of the Case
The respondent-assessee, an online travel company, facilitated the booking of hotel rooms for customers through its website and mobile application and received commission from hotels for such bookings. Customers could make payments either at the time of booking or directly at the hotel. Upon confirmation, the assessee issued a Hotel Confirmation Voucher to the customer and a Hotelier’s Voucher to the concerned hotel. Tax invoices were issued by the assessee upon receipt of payment. Out of the total amount collected, the assessee retained only its commission and service fee, and the remaining amount was remitted to the hotels.
The Department contended that the assessee was liable to service tax under the category of short-term accommodation services and not entitled to abatement. The assessee submitted that it was providing Tour Operator service as it merely facilitated booking arrangements between hotels and customers and was neither a hotel nor an agent of a hotel. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) accepted this submission and held that the assessee qualified as a tour operator and was entitled to 90 per cent abatement under Notification No. 1/2006-S.T., dated 01-03-2006 and Notification No. 26/2012-S.T., dated 20-06-2012. The matter was accordingly placed before the Supreme Court.
Supreme Court Held
The Hon’ble Supreme Court held that there was no ground to interfere with the order of the CESTAT. After condoning the delay in filing the appeals, the Court dismissed the same and upheld the CESTAT’s finding that the assessee was correctly classified under the taxable category of Tour Operator service as defined under Sections 65(105)(n) and 65(115) of the Finance Act, 1994. The Court endorsed the view that the assessee was engaged only in arranging or booking accommodation as part of tour-related services and had not itself provided any short-term accommodation service. Therefore, it was rightly entitled to claim the benefit of 90 per cent abatement as per Section 93 of the Finance Act, 1994 read with Notification No. 1/2006-S.T., dated 01-03-2006 and Notification No. 26/2012-S.T., dated 20-06-2012.
List of Cases Reviewed
- Make My Trip (India) Pvt. Ltd. v. Additional Director General — (2024) 16 Centax 2 (Tri. – Del.) — Affirmed [Para 2]
