TaxTMI 
TaxTMI 
2010 (10) TMI 801
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....nt of service tax under the category of business auxiliary services though they were providing the said services to M/s. Paul Merchants Ltd., Chandigarh/M/s Western Union Financial Services Inc. New Jersy in respect of Western Union Money Transfer Services. Show-cause notice was issued to the appellant demanding service tax and education cess with interest on the gross commission received for the Business Auxiliary Services provided to M/s. Paul Merchants Ltd., (PML) during the period September 2004 to November 2005 and also proposed to impose penalties under various sections and also demand of the interest. Appellants resisted the show cause notice. The adjudicating authority after considering all the submissions made before him confirmed ....
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....ncial Corporation and getting commission from Western Union. He would also submit that PML was providing training and back up support and there is a restriction on the appellants as to advertising or promoting on behalf of any competitor of PML. It is also his submission that the appellants had admitted that they get business canvassing commission which they receive in Indian currency. He would draw our attention to the order of the Coordinate Bench in the case of Microsoft Corpn. (I.) (P.) Ltd. v. CST [2009] 22 STT 201 (New Delhi - CESTAT) which was upheld by the Hon'ble High Court as Microsoft Corporation (India) (P.) Ltd. v. CST [2009] 23 STT 400 (Delhi). He would draw our attention specifically to paragraph 27 of the Tribunal's judgment....
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....rashtra and Andhra Pradesh. Appellant entered into an agreement dated 2-11-2002/19-5-2004 with one M/s. Weizmann Forex Ltd., Cochin (WFL for short) who is an Indian representative of M/s. Western Union Financial Services Inc. (hereinafter called as Western Union). Western Union is a global leader in money transfer and massaging services. WFL is authorized to provide money transfer on behalf of the Western Union in India and also to engaged sub-representatives 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 per cent of the fee received by the WFL for each consumer receive transaction ....
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....y the said money to the beneficiary on verification of identity. It is undisputed that the appellant herein does not charge any amount as commission or fee from the recipients of the amount. The said Western Union charges fee from the person who is situated outside India and pays WFL some amount as commission and WFL pay current appellant a part of the amount as compensation. In the whole transaction it can be seen that the services rendered by 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....