#Business Auxiliary Services

CESTAT Chennai rules that visa facilitation services provided directly to travelers do not qualify as 'business auxiliary services' under Section 65(19) of the Finance Act, 1994, exempting travel agencies from service tax liability. The ruling clarifies the scope of taxable services, impacting travel agencies and tax practitioners dealing with similar disputes.

CESTAT Hyderabad rules that threshing and redrying of tobacco leaves on a job work basis qualifies as processing of agricultural produce, exempting it from service tax under Notification 14/2004-ST. The decision clarifies that such activities do not fall under 'Business Auxiliary Services', providing relief to tobacco processors and traders from retrospective tax demands.

CESTAT Hyderabad ruled that commissions received by air travel agents from General Sales Agents (GSAs) and their own branches are not taxable under Business Auxiliary Services (BAS). The decision quashes service tax demands and penalties, reinforcing that GSA commissions fall outside BAS purview, offering relief to travel agents and similar service providers.

CESTAT Hyderabad rules that trading profit from ocean freight and reimbursable expenses are not taxable under Business Auxiliary Services. Key implications for freight forwarders.