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2016 (4) TMI 1383 - HC - Service TaxLiability of service tax of respondent KSFE for the transactions which were subject of consideration - HELD THAT:- In Muthoot FinCorp. Ltd. v. CCE, Visakhapatnam [2009 (8) TMI 236 - CESTAT, BANGALORE], the Tribunal had taken the view that similar transactions were not exigible to service tax. The concept of the transaction is that KSFE provides service by releasing funds to a person in India, as a result of the money transferred through M/s. Paul Merchants Ltd., which is ‘PML’, for short. The Tribunal has noted that as a matter of fact, if a person pays money in England or elsewhere outside India to be given to his relative in India and the KSFE by virtue of the sub-representation agreement arranges to deliver the said money to the beneficiary on verification of identity, for this exercise, the KSFE does not charge any amount as commission or fee from the recipients of the amount. The charge if any levied by the company outside India on the person who pays the amounts is not a transaction in India. The CESTAT was justified abundantly in following the ratio of Muthoot FinCorp and deciding that KSFE, which was in appeal before the CESTAT, was entitled to an order as has been granted by the Tribunal - Appeal dismissed.
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