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2018 (11) TMI 1159 - AT - Service TaxScope of Courier Service - non-payment of service tax under the head - service provided worldwide - export of services or not - Circular No 96/7/2007-ST dated 23.08.2007. Held that:- It is quite evident that in case of Export pre-paid UPS Worldwide has provided Courier Agency Service to Appellants, and in case of Import Prepaid and Export Freight Collect, appellants have provided Courier Agency Services to UPS Worldwide - In the agreement, by the use of phrase “in the export and import of freight forwarding of express documents/ parcels and shipments” it is quite evident that both appellant and UPS Worldwide are engaged in providing “Express Cargo Service”. The service as provided by UPS Worldwide to Appellant will be covered by Express Cargo Service as has been clarified by the Circular No 96/7/2007-ST dated 23.08.2007. In case of Export Pre-paid, where the consignments are booked by the Appellant for delivery in for territory appellants receive the services from UPS Worldwide for picking up the said consignments from International Airport for delivery in foreign territory. Since Appellants have received the services from UPS Worldwide and the origin of the said services is within India, service tax required to be paid by UPS Worldwide is to be paid by the Appellant on reverse charge mechanism as provided for in Section 66A of Finance Act, 1994 read with rule 3(ii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 - It is quite evident from the agreement that entire services provided by the appellant to UPS Worldwide for picking up the consignments in case of Export Freight Collect and for delivery in the case of Import pre paid have been provided in India. Since these services are provided in India, they are liable to service tax. Exemption from Tax - Export of services or not - Held that:- In view of the fact the no component of service has been provided by the appellant outside India, the services provided by them to UPS Worldwide cannot be termed as export of services, even if the payment against them are received in convertible foreign exchange. Thus exemption claimed by the appellant against provision of these services, by treating them as export of service is not admissible. Penalty - Held that:- Since the charge of suppression with intent to evade payment of tax has been upheld by us, the penalty under Section 78 is justified and upheld. - Also the penalties under Section 77, for non filing of proper returns and submission of complete information are upheld. Demand of Interest - Held that:- Demand for interest under Section 75 of Finance Act, 1994 is also upheld Appeal dismissed - decided against appellant.
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