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2018 (8) TMI 255 - AT - Service TaxDemand of service tax as a co-courier (co-loader) - appellants had realized service value from other couriers for providing service as co-courier (co-loader) - whether the appellant is liable to pay service tax as a co-loader? - Held that:- The Department cannot contend that the clarification issued vide Circular dt. 23.08.2007 would be applicable to the disputed period - As per the 1996 Circular, it is categorically clarified by the Department that a co-loader is not chargeable to service tax - The Tribunal in the case of United Business Xpress India P. Ltd. [2016 (12) TMI 440 - CESTAT NEW DELHI] has considered the very same issue and the applicability of both the Circulars. The issue was then held in favour of the assessee - the demand raised in respect of co-loader cannot sustain. Demand of service tax - reverse charge mechanism - Commission paid to foreign agent who delivered the couriers/packets booked by appellant to the foreign customers - Held that:- The said issue is squarely covered by the decision in the case of First Flight Couriers Ltd. [2016 (8) TMI 145 - CESTAT MUMBAI], where it is held by the Tribunal that the role of the overseas entity commences and ends beyond the border of India and therefore, Rule 3 of Taxation of Service Rules has no application - demand do not sustain. Impugned order cannot sustain and requires to be set aside - appeal allowed - decided in favor of appellant.
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