TMI Blog2023 (7) TMI 1179X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and sub-agents of WU in India is the Western Union, located abroad who use their services for their money transfer business not the persons receiving money in India. Since the service provided is Business Auxiliary Service classifiable under Section 65(105)(zzb) read with Section 65(19) of the Finance Act, 2005, and has been provided in relation to business of Western Union located abroad, and the payment for the service has been received in India in convertible foreign currency, the same has to be treated as export of service. The impugned order is not sustainable in law and the same is set aside - Appeal allowed. - Service Tax Appeal No. 56527 of 2013 - FINAL ORDER NO. 60222/2023 - Dated:- 26-7-2023 - HON BLE MR. S. S. GARG , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer service to Western Union, PML gets commission at an agreed rate. This commission is received in India in convertible foreign exchange. In case the payment of beneficiary is made through the sub agents, the commission received from Western Union is shared by PML with their sub agents and payment of commission to sub agents is made in Indian Rupees on monthly basis as per their agreement. 4. In order to conduct further investigations in the matter, PML were asked to supply the details of commission paid to the appellant for the period 01.10.2004 to 31.03.2009. PML vide letter dated 13.08.2009 supplied the detail of commission paid to the appellant. Although the appellant has not provided the copy of the agreement made by them with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be determined by individuals tax payers or tax collectors for each service, based on their deductive ability would result only in utter confusion and chaos. (iv) Money transfer service is being provided by the Western Union from abroad to their clients who approached their offices or the offices of their agents for remitting money from to friends/relatives in India. The service being provided by the agents and sub-agents is delivery of money to the intended beneficiaries of the customers of WU abroad and this service is business auxiliary service , being provided to Western Union. It is Western Union who is the recipient and consumer of this service provided by their agents and sub-agents, not the persons receiving money in India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under : 6. It is undisputed that the relation between M/s. Western Union and PML is of money transfer services which is not a taxable service in India. The appellant herein by an agreement with PML has contracted to pay the amount to Indian claimants of the money deposited by their relatives in foreign countries. It is also undisputed that the appellant herein is not charging any amount from the Indian claimants as service charges or any other fee. In the background of this, we find that the order of this Bench in the case of Muthoot FinCorp Ltd. (supra) will squarely cover the issue. We may reproduce the relevant paragraph of the said order. 2. The appellants are non-banking financial company with wide network of branches spanni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an order rejecting the appeal filed by the appellant and upholding the services rendered by the appellant is taxable under business auxiliary services. Hence, these appeals. 3.... 5... 6.... 7.... 8. It can be seen from the above reproduced clauses from the sub-representation agreement, though the sub-representation agreement is entered between WFL and the appellant, clauses 5, 14 and 15, very clearly indicate the ultimate beneficiary of the entire transaction is Western Union. It is undisputed in this case, that a person approaches Western Union situated outside India for transfer of fund to a beneficiary in India i.e. A person pays money in England to be given to his relative in India, the appellant herein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h M/s. PML are identical to the clauses which were considered by this Bench in the case of M/s. Muthoot Finance Corp s case. The clauses of agreement/contract in both the cases are similarly worded. 8. Accordingly, in view of the detailed order given by this Bench in the case of Muthoot FinCorp (supra) and facts in the current case being identical as in that case, the impugned order is liable to be set aside and we do so. The impugned order is set aside and appeal is allowed . 11. In view of our discussion above and by following the ratio of the above said decisions, we hold that the impugned order is not sustainable in law and the same is set aside by allowing the appeal of the appellant with consequential relief, if any, as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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