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2024 (3) TMI 185 - AT - Service TaxLevy of Service tax - courier services - Pick-up of shipments from the customers of M/s. Blue Dart in a timely manner in the specified territory - Delivery of shipments to the customers of M/s. Blue Dart in a timely manner within the said territory - HELD THAT:- The appellant has rendered the service of speedy, expeditious and timely pick-up and delivery of 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. It is found 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. A co-loader is required to deliver documents, goods or articles on behalf of the courier agency and charges the courier agency for the service rendered. The appellant has been rendering some other services like tracking the delivery through software applications, submitting a tally of the report at the end of the day, etc. However, 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. The services rendered by the appellant as a co-loader to the courier agency / M/s. Blue Dart are not liable to Service Tax - the demand of Service Tax along with interest and penalty confirmed in the impugned order set aside - appeal allowed.
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