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TMI Blog2015 (12) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No. : ST/191/2008 - ORDER No. A/11423/2015 - Dated:- 13-10-2015 - Mr. P.K. Das, Member (Judicial) And Mr. P.M. Saleem, Member (Technical) For the Petitioner : Shri S.J. Vyas, Advocate For the Respondent : Shri Alok Srivastava, Authorised Representative ORDER Per : Mr. P.K. Das; After hearing both the sides and on perusal of the records, we find that the appellant was engaged in providing Courier Agency Services . They were receiving international consignments from their customers and deliver it through big Courier Companies in abroad. A show cause notice dated 11.10.2007 was issued to the appellant proposing demand of service tax alongwith interest and to impose penalty, on the ground that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be deemed to have been performed outside India. The relevant portion of the said decision is reproduced below:- 2. The appellants are providing taxable services under the category of Courier Agency Services . Revenue proceeded against them on the ground that they did not pay Service Tax for the period from 15-3-2005 to 15-6-2005 on international consignments. According to the appellants, the international consignments during the relevant period were exempted under Rule 4 of Export of Services Rules, 2005. The Commissioner held that in the present case the service provider viz., the appellant is in India and the service receiver who hands over the consignment is also in India. In such circumstances there is no question of any exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) In relation to taxable services other than, (i) The taxable services specified in sub-clauses (a), (f), (h).... and (ii) The taxable service specified in sub-clause (d) as are provided in relation to an immovable property of clause (105) of Section 65 of the Act,- i. Such taxable services which are provided and used in or in relation to commerce or industry and the recipient of such services are located outside India. ii. Such taxable services which are provided and used other than in or in relation to commerce or industry, if the recipient of the taxable service is located outside India at the time when such services are received. From the above Rules, it is clear that if taxable services specified in Sub Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een service provider and service recipient, the status of the person receiving the courier, the fact that transportation is merely incidental in providing courier service are not at all relevant in the light of Rule 3(2). In our view, the clarification dated 3-10-2005 issued by the Ministry with regard to international courier agency is contrary to Rule 3(2) of Export Services Rules, 2005. 4.1. We also note that the Adjudicating Authority has imposed a penalty of ₹ 4.5 crores, which is a very savage one, to say the least. The appellant did not discharge the Service Tax liability on a bona fide understanding of the law. In such a case, there is absolutely no justification for imposing penalty, which is equal to twice the duty invo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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