2003 (1) TMI 3 - AT - Service Tax

CEGAT Kolkata Allows Appeals on Service Tax for Courier Company, Remands for Diplomatic Missions Exemption Review

The Appellate Tribunal CEGAT, Kolkata allowed five appeals regarding Service tax for a courier company. The Tribunal remanded the case to the original ... Exemption of courier services to Diplomatic Missions and international organisations under Notification Nos. 44/98-S.T. and 45/98-S.T. - taxability of services between registered courier agents (co-loaders) - remand for verification of evidence - binding nature of Trade Notice on classification of co-loadersExemption of courier services to Diplomatic Missions and international organisations under Notification Nos. 44/98-S.T. and 45/98-S.T. - remand for verification of evidence - Entitlement to exemption for services rendered by the courier company to specified Diplomatic Missions and to UN or international organisations - HELD THAT: - The appellate order records that the Commissioner (Appeals) accepted the legal position that Notifications 44/98-S.T. and 45/98-S.T. grant exemption for services to the specified Diplomatic Missions and to UN/international organisations but denied benefit on the basis that the appellants had not placed sufficient clarification, reason or evidence. The appellants contend they possess bills and a list of such services and, if permitted, can produce the documents before the adjudicating authority. The Tribunal found that the matter requires examination and verification of the claimed documentary evidence by the original adjudicating authority and therefore set aside the impugned order and remanded the issue for fresh consideration and verification of the appellants' entitlement to the exemption. [Paras 2, 5]Remanded to the original adjudicating authority for examination and verification of the appellants' claim to exemption under the Notifications.Taxability of services between registered courier agents (co-loaders) - binding nature of Trade Notice on classification of co-loaders - remand for verification of evidence - Whether services provided between two registered courier agents (co-loaders) are outside the definition of courier agency and not leviable to Service tax - HELD THAT: - The appellants relied on a Trade Notice of the Calcutta Commissionerate indicating that co-loaders providing services to courier agencies do not fall within the definition of courier agencies as they do not provide service directly to customers. The Tribunal noted that the Trade Notice was not placed before the lower authorities but that the question of whether business between two courier agencies falls outside the Rules and hence is not leviable to Service tax requires consideration. The Tribunal therefore set aside the impugned order and remanded this issue to the original adjudicating authority to examine the applicability of the Trade Notice and determine tax liability between courier agents. [Paras 3, 5]Remanded to the original adjudicating authority to consider whether services between courier agents (co-loaders) are taxable.Final Conclusion: All five appeals are allowed by way of setting aside the impugned order and remanding the matters to the original adjudicating authority to examine and verify (a) the appellants' entitlement to exemption for services to the specified Diplomatic Missions and international organisations under the cited Notifications, and (b) whether services between registered courier agents (co-loaders) are outside the levy of Service tax. The Appellate Tribunal CEGAT, Kolkata allowed five appeals related to Service tax for a courier company. The issue was whether services to Diplomatic Missions and international organizations are exempt from tax. The Tribunal remanded the case to the original authority for further examination of services provided and business between courier agencies.