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2015 (12) TMI 440 - CESTAT AHMEDABAD

2015 (12) TMI 440 - CESTAT AHMEDABAD - TMI - Demand of service tax - Courier Agency Services - exemption under ‘Export of Service’ - Held that:- appellant collected the consignment from their customers to deliver to the recipient in abroad. They have also collected gross value from the customers to deliver the article to the recipient in abroad. This fact has not been disputed by the department. Hence, the decision of the Tribunal in the case of TNT India Pvt. Limited vs. Commissioner of Service .....

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the records, we find that the appellant was engaged in providing Courier Agency Services . They were receiving international consignments from their customers and deliver it through big Courier Companies in abroad. A show cause notice dated 11.10.2007 was issued to the appellant proposing demand of service tax alongwith interest and to impose penalty, on the ground that the appellant had not paid service tax during the period from 15.03.2005 to 15.06.2005 and wrongly availed exemption under Expo .....

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ed by the following decisions:- (a) Prakash Air Freight Pvt. Limited 2008 (10) STR 308 (Tri. Bang.) (b) Prakash Air Freight Pvt. Limited 2011 (23) STR 220 (Kar.) (c) Professional Couriers 2008 (10) STR 125 (Tri. Chennai) (d) U.B. Xpress (South) Pvt. Limited 2008 (12) STR 152 (Tri. Chennai) (e) TNT India Pvt. Limited 2007 (7) STR 142 (Tri. Bang.) 3. The learned Authorised Representative on behalf of the Revenue submits that the appellant had not rendered the service to the foreign consignee, in o .....

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g taxable services under the category of Courier Agency Services . Revenue proceeded against them on the ground that they did not pay Service Tax for the period from 15-3-2005 to 15-6-2005 on international consignments. According to the appellants, the international consignments during the relevant period were exempted under Rule 4 of Export of Services Rules, 2005. The Commissioner held that in the present case the service provider viz., the appellant is in India and the service receiver who ha .....

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er Section 78 of the Finance Act, 1994. The appellants are highly aggrieved over the impugned order. 3. S/Shri K.S. Ravi Shankar and R. Dakshinamurthy, learned Advocates appeared for the appellants and Shri Anil Kumar, learned JDR for the Revenue. 4. Heard both sides. We reproduce Rule 3 of the Export of Services Rules, 2005. 3. Export of taxable Service - The export of taxable service shall mean - (1) in relation to taxable services specified in sub-clauses (d), (p), (q), (v) and (zzq) of claus .....

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shall be considered to have been performed outside India. (3) In relation to taxable services other than, (i) The taxable services specified in sub-clauses (a), (f), (h).... and (ii) The taxable service specified in sub-clause (d) as are provided in relation to an immovable property of clause (105) of Section 65 of the Act,- i. Such taxable services which are provided and used in or in relation to commerce or industry and the recipient of such services are located outside India. ii. Such taxable .....

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65(105)(f). In the case of international courier service, the consignment obviously has to be delivered abroad. In the light of Rule 3(2) it is to be considered as performed outside India. When the service is performed outside India, there cannot be any Service Tax liability in terms of Rule 4 as such a Service is deemed to be exported. The performance of the service is completed only when the courier is delivered outside India to the consignee. It is not correct to say that the transportation .....

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ed to be performed outside India. The fact that the service provider and service receipt are in India is not relevant while considering whether there is export of service in the light of the deeming provision in Rule 3(2). All the other points, such as contractual relationship between service provider and service recipient, the status of the person receiving the courier, the fact that transportation is merely incidental in providing courier service are not at all relevant in the light of Rule 3( .....

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