TMI Blog2020 (3) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... issue decided in the case of FIRST FLIGHT COURIERS LTD. VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI-II [ 2016 (8) TMI 145 - CESTAT MUMBAI] where it was held that the services received by the courier agency from the co-loader is not liable to Service Tax, and further where such service is provide by a co-loader situated outside India, the said activity is beyond the territorial jurisdiction of Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is a courier agency providing courier services which are liable to Service Tax. Admittedly, the appellant is paying Service Tax on the gross amount received from service receiver from the person who booked consignment/parcels/letters through them. Some of these consignments/parcels etc. are meant for delivery overseas. The appellant avails services of overseas agencies who are also their group ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ckage or consignment, on such gross amount, the courier agencies have paid the Service Tax. Accordingly, the Board observed in the following words: It is significant to point out that the charges of the co-loaders to the courier agency for in-transit movement of goods, documents or articles are in any case ultimately recovered by the courier agency from the customer and these charges are incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and of service tax on the commission paid to foreign agent who has delivered the parcels to the customer 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 overseas entities to the appellant is a performance-based service and, to become taxable, requires t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the appellant courier agency is entitled to input service credit and moreover, they have admittedly paid tax on the gross amount, and on this score also, the part of the amount cannot be taxed again, which is incurred by them for payment to co-loader (overseas). 7. Accordingly, this appeal is allowed with consequential benefits, if any, and the impugned order against the appellant stands set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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