9911796707
TMI Blog2018 (10) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... of these TPC franchisees may be sent to the TPC hub at Chennai wherefrom they will be further sent onwards to various other TPC hubs in other parts of the country for further distribution. This being the case, crossing over charges are being collected only for the intra-movement of courier packages within the hub-and- spoke arrangement, namely with the TPC network in Tamil Nadu. In the present case the impugned services within the TPC network is nothing but a continuation or culmination of courier services only. It then cannot be alleged that TPC receiving or giving of services within its own network of the assessee will render them liable to service tax levy. Appeal allowed - decided in favor of appellant. - ST/57/2012, ST/54/2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance Act, 1994. Penalty was also imposed under Section 77. On appeal, the Commissioner (Appeals) vide impugned order No.186/2011 dt. 24.10.2011 set aside the demand and interest in respect of BAS prior to 1.5.2006. Lower appellate authority however upheld the demand with interest under BSS. Penalties imposed under Section 77 78 were also set aside by the said authority. Aggrieved by the upholding of the demand under BSS, the assessee has filed Appeal ST/57/2012. The department has also filed an appeal against setting aside by the Commissioner (Appeals) of the demand under BAS for the period prior to 1.5.2006 as also against setting aside of penalties under Section 77 78 of Finance Act and have filed Appeal ST/54/2012. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the present case. iv) Further, during the disputed period there was a Board circular dated 01.11.1996 in operation, which clarified that no Service Tax can be demanded from the co-loader. In the said Final Order, this Hon ble Tribunal was pleased to refer to the Board Circular dated 01.11.1996. iv) The demand is barred by Limitation and Imposition of penalty under Section 78 is not sustainable. v) As regards the submissions in Department s Appeal, the very same service cannot fall under two different heading. Further, the activity involved in the present case in any case cannot be brought under any of the Service Tax provisions. 3. On the other hand, on behalf of the department, Ld. A.R Shri K. Veerabhadra Reddy submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be demanded from the co-loader will very much be applicable to their case. We are however unable to appreciate this argument. The Board s circular sought to cover cases where one courier agency utilizes services of another company for in-transit movement of documents etc. from one point to another; such co-loaders undertake to transport documents, goods etc. on behalf of courier agency and charge courier agency for such services. The facts on record shows that an assessee or their franchisee units are definitely not co-loaders as envisaged in the Board s circular. Hence this argument does not carry merit. 5.2 However, we do find merit in the alternate argument of the Ld. Advocate that activity involved in the present case is a contin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ach of these TPC franchisees may be sent to the TPC hub at Chennai wherefrom they will be further sent onwards to various other TPC hubs in other parts of the country for further distribution. This being the case, crossing over charges are being collected only for the intra-movement of courier packages within the hub-and- spoke arrangement, namely with the TPC network in Tamil Nadu. We therefore find that in the present case the impugned services within the TPC network is nothing but a continuation or culmination of courier services only. It then cannot be alleged that TPC receiving or giving of services within its own network of the assessee will render them liable to service tax levy. In the event, upholding of the demand under BSS by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
