TaxTMI 
TaxTMI 
2016 (12) TMI 440
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....ce Act, 1994. The demand of service tax stands challenged in the present appeal. Appellant is a provider of service under the category of Courier Service falling under Section 65(33) of the Act. Service tax demanded in respect of co-loader services provided by the appellant to other courier service companies for delivery of domestic courier packets as well as imported courier packets. The service tax demand has been made under the category of Business Auxiliary Service (BAS) classified under Section 69(19) of the Act. The second part of the demand has been made on the consideration received by the appellant for packets booked for delivery to other countries on the ground that the activity did not belong to export of service since no foreign....
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....ellant and Ms. Neha Garg, ld. Departmental Representative for Revenue. 4. Significant part of the demand pertains to the activity carried out by the appellant to other courier companies as a co-loader. This involves providing the last leg service by supplying the courier packets to the recipient. They have also received consideration for this activity. The CBEC has clarified vide their circular dated 31.10.1996 that such services of a co-loader will not be covered under the category of courier service for levy of service tax. This is on account of the fact that the co-loaders do not provide any service to the customer, who gives the packets to the courier agencies for delivery to the ultimate recipient. The Department has now taken the vie....
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.... 3rd person. Thus, the activity so undertaken does not fall under Business Auxiliary Service (BAS) or any other existing taxable services." 7. The transaction between the appellant and the other courier agency is on principal to principal basis. It cannot be said that the service has been rendered on behalf of the courier agency. Consequently, activity cannot be covered under the definition of BAS and hence this part of the demand cannot be sustained. 8. Now, we turn to the second part of the demand. The appellant has received certain amounts from abroad for delivery of incoming courier packets. They have also received some amounts for the courier consignments exported on collect basis. The claim of the appellant is that this amounts to e....