9911796707
TMI Blog2024 (3) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax of Rs.3,59,47,164/- (including cess) along with interest and equal amount of Service Tax as penalty. 2. Brief facts of the case are that the appellant is engaged in the business of providing services in the nature of courier services. They had entered into an agreement with M/s. Blue Dart Express Limited, Mumbai [hereinafter referred to as 'Blue Dart'] for rendering the services of : - a. Pick-up of shipments from the customers of M/s. Blue Dart in a timely manner in the specified territory; and b. Delivery of shipments to the customers of M/s. Blue Dart in a timely manner within the said territory. 2.1 The appellant has taken registration from the Service Tax Commissionerate, Kolkata with effect from 01.04.2010 for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gory of courier agency service as defined under Section 65(105)(f) of the Finance Act, 1994. 4.1 The appellant submits that the services rendered by them to M/s. Blue Dart could only be categorized as "co-loader service" provided to other courier agencies, which is not liable to Service Tax as clarified by the Board vide Instruction in Circular F.No. 341/43/96-TRU dated 31.10.1996. 4.2 The appellant further submits that the Show Cause Notice in this case has not categorically stated under which sub-clause of 'Business Support Services' the services rendered by the appellant have been classified; the impugned order has proposed to classify the service under the category of Business Support Services only on the ground that the activity of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time-sensitive shipments, packages, documents, etc. The services rendered by the appellant are in the nature of "courier agency service" as defined in clause (33) of Section 65 of the Finance Act, 1994. We find that the Board Circular F.No. 341/43/96-TRU dated 31.10.1996 has clarified the Service Tax liability of the services rendered by co-loaders to the courier agencies. The relevant part of the above Circular is reproduced below: - "15. It has been pointed out that in some cases one courier agency, who undertakes to deliver the documents, goods or articles received from customers, utilises the services of another company for in-transit movement of such documents etc. from one point to another. These are, technically, called co-loaders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, we find that all these activities are associated with the courier services only. The primary service rendered by the appellant is courier service and the service of tracking of delivery schedules, managing logistics, accounting, processing transactions, etc., are all ancillary services to their courier services. Thus, the activities rendered by the appellant as a co-loader to the courier agency are categorically exempted from the payment of Service Tax vide the Board Circular mentioned above. 8. We also observe that the services rendered by the appellant are not liable to Service Tax as held by the Tribunal in the cases of: - i. United Business Xpress India P. Ltd. v. Commissioner of S.T., Delhi [2017 (48) S.T.R. 270 (Tri. - Del. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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