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2016 (8) TMI 145 - CESTAT MUMBAI

2016 (8) TMI 145 - CESTAT MUMBAI - 2016 (44) S.T.R. 474 (Tri. - Mumbai) - Import of service or not - “courier” service and “air travel agency” service - “last mile” delivery of packages booked by their customers in India - taxability u/s 66A of the Finance Act, 1994 - Held that:- The manner in which each of the taxable services are deemed to be received in India is laid down in the Taxation of Service (Provided from Outside India and Received in India) Rules 2006. Therefore, the leviability of a .....

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s 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 India) Rules 2006. - Demand set aside. - APPEAL NO: ST/453/2012 - Final .....

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mposing penalties under sections 76 and 77 of Finance Act, 1994. 2. The appellant is registered as provider of courier service and air travel agency service. The case of Revenue is that the appellant has entered into memorandum of understanding with counterparts in Singapore, Europe, USA and with Al Niyadi Services Est. for last mile delivery of packages booked by their customers in India. According to the appellant, the services received by them are not taxable as per section 66A of the Finance .....

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vice 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 lea .....

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the other party and arrange to deliver the consignments promptly. The payments will necessarily be required to be made by book adjustments and it is this sum which is reflected as International service charges . The Noticee is apparently trying to mislead the department by seeking shelter under the Taxation of Services (Provided from Outside India and Received in India) Rules by stating that no part of service stands rendered in India. 5. We find that the issue in dispute lies within the narrow .....

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emed to be received in India is laid down in the Taxation of Service (Provided from Outside India and Received in India) Rules 2006. 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 treate .....

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