TMI Blog2016 (8) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... without reference to the relevant provisions of the Rules is not sufficient to sustain a demand for service tax. The services rendered by the overseas entities to the appellant is a performance-based service and, to become taxable, requires that at least some portion of that be rendered in India. The role of the overseas entities commences upon the landing of the packages at the airport of destination. From there, the overseas correspondents ensure delivery of such packages to the consignees. It is therefore amply clear that the role of the overseas entity commences and ends beyond the border of India. It therefore, cannot be said to be in conformity with Rule 3 of the Taxation of Service (Provided from Outside India and Received in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (Provided from Outside India and Received in India) Rules 2006 requires payment of tax only when a service is either partly or fully performed in India whereas the services which are rendered by their overseas correspondents are performed entirely at the destination. Appellant relies on the decision of the Tribunal in Intas Pharmaceuticals Limited v. Commissioner of Service Tax, Ahmedabad [2009 (16) STR 748 (Tri. Ahmd.)]. Further, the appellant claims that it is provider of a service to customers in India and not a deemed provider of service in relation to the overseas correspondents. 3. The learned Authorised Representative reiterates the contents of the impugned order. 4. It would appear from the extract of the impugned order belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the leviability of a tax in the hands of recipient of a service will necessarily have to be in accordance to the provisions of the said Rules. Mere reliance on section 66A of Finance Act, 1994 without reference to the relevant provisions of the Rules is not sufficient to sustain a demand for service tax. The original authority also appears to have treated the transfer of package from the Indian consignor to the overseas consignees to be the service that is liable to tax. The booking of package by customers in India is liable to tax under section 65(105)(f). The tax on charges levied from customers is discharged by the appellant. In the course of rendering this service, appellant uses a service provider at the destination to com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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