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2018 (10) TMI 36 - AT - Service TaxBusiness Auxiliary Services” (BAS) / Business Support Service (BSS) - appellants were engaged in Courier activity, later on investigation it emerged that they were collecting certain charges as ‘crossing over charges’, raised on their sub-franchisee agencies located in other parts of Tamil Nadu for the purpose of enabling further movement of documents, which originated from their sub-franchisees’ end. Held that:- It is but evident that the various franchisees spread over Tamil Nadu and the assessees based in Chennai, are operating in the hub-and-spoke business model. The documents from each of these TPC franchisees may be sent to the TPC hub at Chennai wherefrom they will be further sent onwards to various other TPC hubs in other parts of the country for further distribution. This being the case, crossing over charges are being collected only for the intra-movement of courier packages within the hub-and- spoke arrangement, namely with the TPC network in Tamil Nadu. In the present case the impugned services within the TPC network is nothing but a continuation or culmination of courier services only. It then cannot be alleged that TPC receiving or giving of services within its own network of the assessee will render them liable to service tax levy. Appeal allowed - decided in favor of appellant.
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