2014 (10) TMI 310

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....es in India and mainly deals with the following four types of transactions:     (i) Export of shipment, where overseas customer pays consideration to overseas DHL entities;     (ii) Import of shipment, where overseas customer pays consideration to overseas DHL entities;     (iii) Export of shipments, where customer pays consideration to the local DHL entity such as the applicant;     (iv) Import of shipments, where the customer pays consideration to the local DHL entity, such as the applicant. 3. Revenue issued a Show Cause Notice to the applicant on the ground that in case of import of shipments where the overseas customers had already paid the consideration to the overseas D....

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.... applicants were discharging its service tax liability on the gross revenue earned from the courier business generated from the customers in India. 6. The applicants are paying service tax on the total consideration amount in respect of consignments which are delivered abroad by the overseas network of DHLI. As per the agreement entered with DHLI the applicant is required to pay DHLI network difference between earnings from billed shipment and 110% of total cost. The applicant had not received any compensation from the DHLI regarding shipment delivered in India which were booked abroad. The contention is that as the service recipient who booked the consignment and the service provider i.e., local DHL entity are outside India, therefore app....

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....ants are only receiving such consignments and delivering in India. As per the agreement The DHL will compensate to the applicants in case the applicants fail to make up the cost. In the present proceedings there is no evidence on record to show that the applicants received any such compensation. A specific query was put to the Sr. Advocate relating to export of shipments by the applicants where overseas customers pay consideration to the overseas DHLI entity. The learned senior counsel for the applicants submitted that such consignments are only to the extent of 7 or 8% and the applicants are not taking into consideration these consignments for the purpose of paying service tax in respect of courier service. 11. In view of the decision in ....