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TMI Blog2023 (7) TMI 1179X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case are that on an information received that the sub agents of M/s Paul Merchants Limited (in short PML) are not paying service tax on the commission earned by them, enquiries were made from PML. It was found that PML are engaged in the business of "Money Transfer service" in pursuance to an agreement with Western Union Financial Services Inc USA who do not have any office in India. Western Union provides money transfer services worlds wide, in association with various primary agents and PML is one of such primary agents. As per the policy of the service, money is remitted to a recipient in India as per instructions of the customer of Western Union located outside of India. 3. The services offered in connection with money trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalties under Section 76, 77 and 78. Aggrieved by the said order, the appellant filed an appeal before the Ld. Commissioner (Appeals) who rejected their appeal. Hence, the present appeal. 7. None appeared on behalf of the appellant. 8. We have heard the Ld. DR and perused the case records as the issue involved is in a narrow compass, we proceed to decide the matter on merits after examining the records. 9. We find that the only issue involved in the presernt case is whether the appellant is liable to pay service tax under "Business Auxiliary Service" or not. This issue is no more res-integra and has been settled by various decisions of the Tribunal in the case of M/s Paul Merchants Ltd. Vs. CCE reported in 2013 (29) STR 255 ( Tri.-Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been received in India in convertible foreign currency, the same has to be treated as export of service. It is the person who requested for the service and is liable to make payment for the same who has to be treated as recipient of the service, not the person or persons affected by the performance of the service. Thus, when the person on whose instructions the services in question had been provided by the agents/sub-agents in India and who is liable to make payment for these services, is located abroad, the destination of the services in question has to be treated abroad. The destination has to be decided on the basis of the place of consumption, not the place of performance of service, in the case of this service". 10. Further this is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resentatives to offer such services. The appellant herein has been appointed by WFL to provide money transfer and to hold necessary licenses and permits to provide such services. The appellant is given compensation of 50% of the fee received by the WFL for each consumer receive transaction from Western Union. Show cause notices were served upon the appellants for the period 19-5-2004 to 31-1-2006 and 1-7-2003 to 19-5-2004 demanding Service Tax under the category of business auxiliary service. The allegation in the show cause notice was that the said activity is nothing but promoting the business of WFL. The appellants contested the show cause notices on merits. The adjudicating authority confirmed the demands in the show cause notices vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellant of money transfer is directly to Western Union. If that be so, it can be said that the appellant is providing the services to Western Union whose beneficiaries are outside India. 9. We find that the CBEC vide its circular No. 137/307/2007, dated 24-2-2009 gave a clarification regarding the applicability of the provisions of the Export of Service Rules, 2005 in certain situations :- 10. It can be seen from the above reproduced clarification that it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India. It is an admitted fact that the benefits of the services rendered by the appellant are accrued to a pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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