2010 (2) TMI 288 - AT - Service Tax

Courier services export of service Held that - one of the conditions necessary for treating such service as falling under the Export of Services Rules, 2005 is that payment for such service is received by the service provider on payment in convertible foreign exchange. In the present case, there is nothing on record to show that the payment was made to the assessees in convertible foreign exchange and the reference throughout is to payment in Indian currency no export benefits

Summary

The Appellate Tribunal CESTAT, Chennai ruled that the respondents providing Courier Service outside India were not entitled to exemption from service tax for services from 15-3-2005 to 15-6-2005 as payment was not received in convertible foreign exchange. The appeal was allowed, setting aside the impugned order.