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2024 (1) TMI 87 - CESTAT BANGALORELevy of Service Tax - Business Support Services or not - amount paid by the appellant to the overseas joint-venture companies in delivering the consignments of consignors in India to consignees situated outside India - reverse charge mechanism. The principal argument of the appellant is that the joint-venture companies also render the service, which is in the nature of ‘Courier Agency Service’ and they are to be considered as ‘co-loaders’; accordingly, the amount paid by them to the co-loaders, which already suffered service tax, cannot be levied to service tax under ‘Business Support Service’. HELD THAT:- The issue has been considered by this Tribunal in a series of cases referred to by the learned advocate for the appellant and this 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 territorial jurisdiction of Service Tax Law and on this account also not taxable. It is found that following the said principle, demand notices for different periods issued to the appellants for different periods have been set aside by the Department and no appeals have been filed by the Revenue accepting the said principle of law. The impugned orders against which appeals filed by the appellant are set aside and their appeals are allowed.
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