2018 (9) TMI 1730

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....llants have two divisions, T.T. Logistics is the division undertaking the activity in respect of services provided to M/s. British Airways World Cargo and T.T. Services is the division undertaking activity connected to visa services. The appellants have, through T.T. Logistics have entered into two separate agreements with M/s. British Airways World Cargo, one called as cargo services agreement and other as cargo general sales agent agreement. The Department alleged that the appellants are rendering Business Auxiliary Service as per Section 65(19) of the Finance Act, 1994. The taxable service being under Section 65(105)(226) vide show-cause notice dated 7.8.2006 was issued to the appellants demanding service tax of Rs. 1,97,39,635/- along w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....plete the immigration formalities. Visa facilitators collect certain statutory charges like visa fee, certification fee, attestation fee, emigration fee, etc., from the visa applicant, which are remitted to the respective authorities and in additional collect service charges for themselves as remuneration for the assistance provided by them to obtain the visa. Such a service provided by a visa facilitator, in the form of assistance to individuals directly, to obtain a visa, does not fall under any of the taxable services under Section 65 (105) of the Finance Act, 1994. Hence service tax is not attracted." 2.2 He further submitted that the Circular was followed by the Hon'ble Tribunal in the following cases: Green Channel Travel Services....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 24.2.2009 has advised in para 3, that the law has to be read harmoniously so as to avoid contradictions within a legislation and accordingly, the meaning of the terms "used outside India" has to be understood in the context of the characteristics of a particular category of service as mentioned in sub-rule (1) of Rule 3 of Export of Services Rules, 2005. The circular further gives an example of category of three services [Rule 3(1)(iii)] where it is possible that services may take place even when all the relevant activities take place in India so long as the benefits of the services accrue outside India. Board further clarifies that for Rule 3(1)(iii), the relevant factor is the location of the service receiver and not the place of perform....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of export and therefore, in terms of Rule 3(3) of Export of Service Rules, 2005, the services are exempt. However, on being questioned, the learned counsel could not specifically reply as to whether such services are rendered only with reference to the export cargo or otherwise. He submitted that necessary details are contained in the agreements and he was not in a position to submit the agreements readily. Therefore, we find that for determination of the liability of service tax of the appellant vis-à-vis the contracts and the actual nature of the work undertaken by the appellants so as to evaluate whether they can be termed as export of services. 4.2 Coming to the subsequent issuance of show-cause notice seeking to increase the qu....