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TMI Blog2019 (6) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(IA) of the RBI Act, 1934 and are engaged in lending loans against gold / gold jewellery. In addition, they are also engaged in Money Transfer Service to the clients of M/s. Western Union, USA under agreement with M/s. Wall Street Finance Ltd., Mumbai and other MTSOs. The issue of payment of service tax in respect of services rendered to MTSOs has been subject matter of dispute. On the basis of judgments of the Tribunal and clarification by CBEC vide Circular No.163/14/2012-ST dt. 10/07/2012 that the money transfer to the beneficiaries in India is not liable to service tax as the place of provision of such service is outside India. The appellant had not paid service tax on the service provided as agent / sub-agent for delivery of money to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rency from outside India to India during the period from 01/07/2012 to 13/10/2014. Thereafter, the appellant filed application dt. 23/12/2015 for refund of service tax of Rs. 4,94,865/- paid vide challan No.6481 dt. 31/03/2015 in respect of Money Transfer Service provided during the period from April 2014 to September 2014. The original authority after following the due process vide order dt. 31/03/2016 rejected the refund claim on the ground that there was no evidence of payment of service tax on the commission received on MTSO service for the period April 2014 to September 2014. Aggrieved by the said order, appellant filed appeal before the Commissioner(Appeals) and the Commissioner(Appeals) vide the impugned order rejected the appeal on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Ltd. Vs. CCE, Trichy [2015(325) ELT 239 (SC)] v. Hindustan Polymers Co. Ltd. Vs. CCE [1996(106) ELT 12 (SC)] 4.2. He further submitted that on merit also, the impugned order is contrary to the settled law that the service provided by the agent / sub-agent has to be treated as export of service under Rule 3(1)(iii) read with Rule 3(2) of Export of Services Rules, 2005 and not liable to service tax. For this submission, he relied upon the decision of the Tribunal in the case of CCE, Chandigarh Vs. Rambel Consumer Services [2017(49) STR 415 (Tri. Del.)]. He also submitted that as per the Indian Contract Act, 1872, the principal is bound by and responsible for the acts of the sub-agent, as if he were an agent originally appointed by the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60 (T)] 4.3. He also submitted that the appellant has not collected any amount over and above the price of goods / service and there is no passing on the burden of tax paid and unjust enrichment is not attracted. For this submission, he relied upon the following decisions:- i. CCE, Mangalore vs. Manjunatha Food & Packaging Ltd. [2006(199) ELT 166 (T)] - Affirmed by High Court of Karanataka [2009(239) ELT A22 (Kar.)] ii. CCE, Bhavanagar Vs. Modest Infrastructure Ltd. [2011(24) STR 369 (T)] iii. Santosh Patil Vs. CCE, Raigarh [2016(46) STR 257 (T)] iv. CCE Vs. TATA Tele Services Ltd. [2014(34) STR 43 (T)] 5. On the other hand, the learned AR defended the impugned order and further submitted that the Larger Bench decision of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Merchants cited supra. Further I find that the Division Bench of this Tribunal in the case of CCE Vs. Rambel Consumer Services cited supra, this Tribunal has held as under:- 8.There is no dispute before us, that as a consequence of the ratio discernible from the judgment of the Larger Bench in Paul Merchant Ltd. principal agents and sub-agents of M/s. Western Union Ltd. and similarly circumstanced foreign Money Transfer entities are not liable to service tax under provisions of the Act; since the services provided by these agents amounts to export of services and these are exempted from the levy of Service Tax under the Export of Service Rules, 2005. As on date the decision of the Larger Bench in Paul Merchant Ltd. is extant and operative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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