9911796707
TMI Blog2016 (8) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... under sections 76 and 77 of Finance Act, 1994. 2. The appellant is registered as provider of "courier" service and "air travel agency" service. The case of Revenue is that the appellant has entered into memorandum of understanding with counterparts in Singapore, Europe, USA and with Al Niyadi Services Est. for "last mile" delivery of packages booked by their customers in India. According to the appellant, the services received by them are not taxable as per section 66A of the Finance Act, 1994 read with Rule 3 of the Taxation of Service (Provided from Outside India and Received in India) Rules 2006. The appellant also submits that they have discharged the service tax on the entire consideration received from customers in India and that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department by seeking shelter under the Taxation of Services (Provided from Outside India and Received in India) Rules by stating that no part of service stands rendered in India." 5. We find that the issue in dispute lies within the narrow compass of applicability of section 66A of Finance Act, 1994 to the payments made by the appellant to some overseas entities for services provided at the destination in relation to the packages booked by the customers of the appellant in India. Section 66A of Finance Act, 1994 is intended to place burden of tax on the recipient of the service in India in relation to the services that are taxable if rendered by an overseas service provider. The manner in which each of the taxable services are deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eas entities to the appellant is a performance-based service and, to become taxable, requires that at least some portion of that be rendered in India. The role of the overseas entities commences upon the landing of the packages at the airport of destination. From there, the overseas correspondents ensure delivery of such packages to the consignees. It is therefore amply clear that the role of the overseas entity commences and ends beyond the border of India. It therefore, cannot be said to be in conformity with Rule 3 of the Taxation of Service (Provided from Outside India and Received in India) Rules 2006. 7. In view of the above we find that the service rendered by the overseas entity is not liable to service tax under section 66A of Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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