9911796707
TMI Blog2018 (8) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... the period April, 2008, noticed that for the period from May, 2006 to August, 2007, the appellants had realized service value from other couriers for providing service has co-courier (co-loader), but did not discharge service tax liability on the said income. It was also noticed that for the period 2006-07 and 2007-08, they paid service charges to Foreign Service providers who deliver their documents/parcels in foreign countries, for which also appellants had not discharged service tax. Accordingly, Show Cause Notice dt. 04.09.2008 was issued raising the above two allegations and for demand of service tax along with interest and for imposing penalties. After due process of law, the Commissioner vide order impugned herein, confirmed the dema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. 2.3 He relied upon the decision in the case of United Business Xpress India P. Ltd. Vs. C.S.T., Delhi - 2017 (48) S.T.R. 270 (Tri. - Del) and argued that in the said case it was held that the co-loader is not liable to pay service tax vide the Circular dt. 31.10.1996. 2.4 On the second issue with regard to the demand raised for commission paid to foreign agent who delivered the couriers/packets booked by appellant to the foreign customers, he submitted that the Department is demanding the service tax under reverse charge mechanism as Business Auxiliary Services. At the time of booking the courier parcel to deliver in the foreign country, the appellant has discharged the service tax on the amount received from the customer. Out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 3 of Taxation of Service (Provided From Outside India and Received In India) Rules, 2006. 4. Heard both sides. 5.1 The first issue that arises for consideration is whether the appellant is liable to pay service tax as a co-loader. The Ld. Counsel has vehemently relied upon the Circular No. 341/43/1996 dt. 01.11.1996. The relevant portion of the Circular is reproduced as under : "15. It has been pointed out that in some cases one courier agency, who undertakes to deliver the documents goods or articles received from customers, utilises the services of another company of in-transit movement of such documents, etc., from one point to another. These are, technically, called co-loaders. The co-loader undertakes to transport the documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia P. Ltd. (supra) has considered the very same issue and the applicability of both the Circulars. The issue was then held in favour of the assessee. We find no reason to take a different view. Thus, following the said decision as well as the facts of this issue, we are of the considered opinion that the demand raised in respect of co-loader cannot sustain and requires to be set aside, which we hereby do. 5.3 The other issue involved is the demand of service tax on the commission paid to foreign agent who has delivered the parcels to the customers abroad. The said issue is squarely covered by the decision in the case of First Flight Couriers Ltd. (supra). The relevant paragraph is reproduced as under : "6. The services rendered by the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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