The Mumbai International Airport (MIAL) got a relief as the customs, excist and service tax appellate tribunal (CESTAT) rejected service tax department's demand to tax development fee as it was a service being rendered.
According to the service tax department, the incomes that some of these service stations, the authorised service stations earned were not deducting service tax on these incomes.
Andhra Pradesh High Court, Bombay High Court, Punjab and Haryana High Court and now the Bangalore bench of the CESTAT have called it arbitrary, unreasonable and illegal.