TMI Blog2024 (3) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice as defined in clause (33) of Section 65 of the Finance Act, 1994. It is found that the Board Circular F.No. 341/43/96-TRU dated 31.10.1996 has clarified the Service Tax liability of the services rendered by co-loaders to the courier agencies. A co-loader is required to deliver documents, goods or articles on behalf of the courier agency and charges the courier agency for the service rendered. The appellant has been rendering some other services like tracking the delivery through software applications, submitting a tally of the report at the end of the day, etc. However, we find that all these activities are associated with the courier services only. The primary service rendered by the appellant is courier service and the service of tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f M/s. Blue Dart in a timely manner in the specified territory; and b. Delivery of shipments to the customers of M/s. Blue Dart in a timely manner within the said territory. 2.1 The appellant has taken registration from the Service Tax Commissionerate, Kolkata with effect from 01.04.2010 for the services of courier agency . An audit conducted by the Service Tax Group-VIII Commissionerate, Kolkata scrutinized the records of the appellant and classified the services rendered by them as Business Support Services classifiable under Section 65(105)(zzzq) of the Finance Act, 1994. As the appellant had not paid Service Tax under this category, a Show Cause Notice dated 20.04.2012 was issued to the appellant demanding Service Tax under the category ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t categorically stated under which sub-clause of Business Support Services the services rendered by the appellant have been classified; the impugned order has proposed to classify the service under the category of Business Support Services only on the ground that the activity of the appellant supports the business of M/s. Blue Dart and that their activity is not limited to door-to-door transportation of time-sensitive documents, goods and articles on behalf of M/s. Blue Dart, but involves services such as fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, accounting and processing of transactions, infrastructural support services and other transaction processing . It is the contention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some cases one courier agency, who undertakes to deliver the documents, goods or articles received from customers, utilises the services of another company for 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 documents, goods or articles on behalf of the courier agency and charges the courier agency for such services. A question has been raised whether under these circumstances the co-loaders are also liable to pay service tax. 16. In this context, it is clarified that co-loaders provide service to the courier agencies as such. They do not provide directly any service to the customer who gives the documents, goods or articles to the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular mentioned above. 8. We also observe that the services rendered by the appellant are not liable to Service Tax as held by the Tribunal in the cases of: - i. United Business Xpress India P. Ltd. v. Commissioner of S.T., Delhi [2017 (48) S.T.R. 270 (Tri. Del.)] ii. Professional International Courier (P) Ltd. v. Commissioner of Central Excise, Chennai-II [2013 (31) S.T.R. 561 (Tri. Mad.)] 9. From the above discussions and following the decisions cited above, we hold that the services rendered by the appellant as a co-loader to the courier agency / M/s. Blue Dart are not liable to Service Tax. Accordingly, we set aside the demand of Service Tax along with interest and penalty confirmed in the impugned order. 10. In view of the above, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
