TaxTMI 
TaxTMI 
2018 (1) TMI 1175
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....appellant's office in different places abroad for remitting money to their relatives or friends in India. The money and the fee for such remittance are collected abroad by the appellant's office. The customers are provided an unique code. This code is passed on by the customers to the recipient of money in India, who on the basis of this secret code approaches the Indian agent of the appellant. On the basis of the submission of the said code, money is given to the recipient. Thereafter, the Indian agent of the appellant collects the principal money and also commission for such work from the appellant. The appellant have entered into a Representative Agreement with Post & Telegraph Department of India. As per the agreement, P&T is under obligation to transfer the money to the designated nominee located in India on behalf of the appellant. This arrangement is created as the appellant have no persons in India. For better appreciation of the facts, the arrangement has been presented in a flow chart by the appellant. We have perused the same. 3. The appellant have such Representative Agreement with various agents in India. The question of service tax liability on this arrangement has....
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.... agents other than the Department of Post to provide the money transfer service to the recipient in India. Relying on the following decisions of the Tribunal, he submitted that on merit, the case has been well settled in favour of the appellant and the impugned order is not legally sustainable on this issue.:- (a) Paul Merchants Limited and Ors - 2012 -TIOL-1877-CESTAT-DEL (b) Wall Street India Finance Ltd. - 2015 (37) STR 642 (Tribunal-Mumbai) (c) Muthoot Fincorp. Ltd. - 2009-TIOL-2256-CESTAT-BANG (d) Bird Travels P.Ltd. - 2016(45) STR 143 (T-Delhi) (e) Airbus Group India P. Ltd. - 2016 (45) STR 120 (T-Delhi) 7. Further, ld. Counsel submitted that the Commissioner (Appeals) relied on a stay order of the Tribunal in the case of Weizmann Forex Ltd. - 2012 (26) STR 253 (Tribunal-Mumbai). The said appeal has been finally decided in Wall Street India Finance Ltd. (supra). The service rendered by Weizmann Forex ltd. (supra)to Western Union is held to be export of service not liable to service tax. 8. Ld. Counsel submitted that the show cause notice issued to the appellant to reject the refund claim only raised grounds of no-export of se....
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....ts did not pay service tax to the Government. Such service tax has been paid by the Department of Post. The appellants reimbursed the said service tax to the Department of Post. The services, which are taxed, at the hands of the Department of Post are essentially with reference to remittance of money to the recipient in India. 11. Contesting the grounds of appeal to the effect that the lower authorities proceeded beyond the scope of show cause notice while examining the doctrine of unjust enrichment, the ld. AR submitted that the statutory requirements of Section 11 B are to be considered by the competent authority before any refund amount is sanctioned and given to the claimant. There is no legal infirmity in the examination of the said statutory requirements by the Original Authority, which was affirmed by the impugned order. 12. We have heard both the sides and perused the appeal records. 13. First, we consider the claim of the appellant for refund on merit. The arrangement involved in the transfer of money from a customer located abroad to an Indian recipient has been explained earlier in this order. These facts are not in dispute. The fact that appellants are not invo....
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....f service and hence, not taxable in India." 14. In case of "Business Auxiliary Service" which is listed in the Rule 3(1)(iii) of Export of Service Rules, 2006, the place of provision of service shall be determined by the location of recipient of such service. In the present case, the Department of Post is rendering service to the appellant by executing the remittance of foreign exchange to the intended recipient in India. For this, they are receiving the considerations from the appellant. The services are availed by the appellant, who is a foreign based entity. This is to be considered as export of service as held by the Tribunal in various cases. 15. Reliance placed by the impugned order on the interim order of the Tribunal in Weizmann Forex Ltd. (supra) is both mis-placed and incorrect. First of all, he has relied on an interim order. In any case, the matter has been finally decided by the Tribunal in Wall Street India Finance Ltd. (supra), wherein Weizmann Forex Ltd.(supra) is one of the party. The Department of Post is not rendering any taxable service in India in the present arrangement. The recipient of service is not the recipient of transferred money in India. He did ....