9911796707
TMI Blog2024 (1) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... is Tribunal has consistently held that the service received by the appellant from the overseas companies in delivery of the couriers/ parcels of the customers of India at various international destinations fall under Courier Agency Service , and the services so rendered is in the nature of co-loaders service; accordingly held to be outside the purview of Business Support Service. Also, it is held that since the service is performance based service and provided outside India; hence not taxable. In view of the consistent stand of different Benches of the Tribunal including Bangalore Bench in the case of M/S TNT INDIA LTD VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX BANGALORE-LTU [ 2020 (3) TMI 845 - CESTAT BANGALORE] , there are no reason not to follow the said judgment - it was held in the said case that issue decided in the case of FIRST FLIGHT COURIERS LTD. VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI-II [ 2016 (8) TMI 145 - CESTAT MUMBAI] where it was held that the services received by the courier agency from the co-loader is not liable to Service Tax, and further where such service is provide by a co-loader situated outside India, the said activity is beyond the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zzq) of Clause 105 of Section 65 of the Finance Act, 1994, during the relevant period from overseas joint-venture companies, which fall under the residuary clause (iii) of Rule 3 of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006; but failed to discharge service tax on the same on reverse charge mechanism. Consequently, demand notice was issued to them for recovery of service tax not paid along with interest and penalty. On adjudication, the demands have been confirmed with interest and penalty mentioned as above, hence the appeal is filed before this Tribunal. 2.2. Further, for the period from October 2009 to March 2010 (Appeal No.ST/27073/2013) and from April 2010 to March 2011 (Appeal No.ST/27072/2013), though the adjudicating authority confirmed the demands, on appeal, the learned Commissioner (Appeals) set aside the adjudication order and allowed the appeals of the appellant; hence the Revenue is in appeal. 3. The learned advocate for the appellant submitted as follows:- i. The appellants are engaged in providing domestic and international courier service. In case of domestic delivery service both consignor or consignee are situated in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 994 and not under "support service of business or commerce". The said activity is fully rendered/performed and utilised outside India and by virtue of Rule 3(ii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006, the services rendered by the foreign companies cannot be said to be performed in India and taxable accordingly under Section 66A of the Finance Act. vi. The services rendered by the foreign companies are performance-based activities and not recipient based service which is clear from the provisions of Rule 4(a) of the Place of Provision of Service Rules, 2012 w.e.f. 01.07.2012. Therefore, for the period prior to 01.07.2012, the same criteria is applicable and hence services of foreign companies would fall under Rule 3(ii) and not under Rule 3(iii) of the 2006 Rules. vii. The learned Commissioner has wrongly considered that the services provided by the foreign companies as recipient based and under 'support service of business or commerce'. In support of their argument, the appellant referred to the judgment of the Tribunal in the case of First Flight Couriers Ltd. Vs. CST [2016(44) STR 474 (Tri. Mum.)] and Concord Express Logistics ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals for determination is: Whether the amount paid by the appellant to the overseas joint-venture companies in delivering the consignments of consignors in India to consignees situated outside India is leviable to service tax under "Business Support Service" for the period 07/2006 to 09/2013. 7. Undisputed facts are that the appellant are engaged in rendering courier service; accordingly registered with the Service Tax Department. They are providing both domestic and international courier services. For international courier service, the amount collected from the customers in India for delivery of the parcels at various international destinations, they paid service tax on the whole of the amounts so collected under the taxable category of "Courier Agency Service". 8. The Revenue has proposed to recover service tax on the amount paid by the appellant for delivery of the couriers / parcels at various international destinations to the join-venture companies, stationed at different places outside India, who deliver the couriers / parcels at international destinations. The Revenue's contention is that the said service of delivering the courier by the joint-venture companies at inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
