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2009 (8) TMI 236 - AT - Service TaxBAS - Money transfer service - Appellants appointed as a sub-agent for undertaking money transfer – demand of Service Tax under the category of business auxiliary service. The allegation in the show cause notice was that the said activity is nothing but promoting the business of agent (WFL) - sub-representation agreement entered between the appellant and WFL – Agreement clearly indicating principal (Western Union) abroad as ultimate beneficiary - It is undisputed in this case, that a person approaches Western Union situated outside India for transfer of fund to a beneficiary in India - . It is undisputed that the appellant herein does not charge any amount as commission or fee from the recipients of the amount. - The said Western Union charges fee from the person who is situated outside India and pays WFL some amount as commission and WFL pay current appellant a part of the amount as compensation. In the whole transaction it can be seen that the services rendered by the appellant of money transfer is directly to Western Union. If that be so, it can be said that the appellant is providing the services to Western Union whose beneficiaries are outside India. – Benefits of service accrue to person outside India - We find strong forces in the contentions raised by the ld. Counsel that the issue is now squarely covered in favour of the assessee by the decision of this Bench in the case of Nipuna Services Ltd. V. CCE&ST, Hyderabad [2009 - TMI - 33480 - CESTAT BANGLORE]. - Accordingly, we are of the considered view that services rendered appellant cannot be taxed under the category of ‘business auxiliary services’
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