2019 (2) TMI 143

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..... hargeable under the head of Business Auxiliary services - appeal allowed - decided in favor of appellant. - ST/2214/2010 - A/31573/2018 - Dated:- 13-11-2018 - Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) For the Appellant(s) : Shri K.S. Ravi Shankar, Shri K.S. Naveen Kumar, Shri N. Anand, Advocate (s) For the Respondent(s) : Shri A.V.L.N Chary, Superintendent (AR) ORDER PER: P. VENKATA SUBBA RAO The appellant herein is a courier company engaged in providing courier services. In addition, they have provided, as per the business practice, services as a co-loaders to another courier company and not to individual customers. Show cause notice was issued to the appellant and t .....

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..... ervices. A question has been raised whether under these circumstances the co-loaders are also liable to pay service tax. 16. In this context, it is clarified that co-loaders provide service to the courier agencies as such. They do not provide directly any service to the customer who gives the documents, goods or articles to the courier agency for their delivery to the consignee. What is chargeable to service tax is the service provided by courier agency to the customer. In this case, the courier agency being not a customer as such, the service provided by co-loader to the courier agency is not chargeable to service tax. It is significant to point out that the charges of the co-loaders to the courier agency for in-transit movement .....

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..... courier services are not chargeable to service tax. First Flight Couriers Ltd., [2016 (44) STR 474 (Tri-Mumbai)] Jac Air Services Pvt. Ltd., [2013 (31) STR 155 (Tri. Del.)] The Learned Counsel prays that this case is identical to the other case wherein, it was held that the charges of co-loaders cannot be taxed under Business Auxiliary Services by the Tribunal. Following the ratio, their appeal may be allowed. 3. Learned Departmental Representative reiterates the findings of the lower authorities. 4. We have considered the arguments on both sides and perused the records. The short point to be decided is whether the coloader charges received by the appellant from other courier agencies cannot be charged to tax under Busine .....

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