TaxTMI 
TaxTMI 
2018 (10) TMI 36
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.... the balance sheet that appellants were collecting certain charges as 'crossing over charges', raised on their sub-franchisee agencies located in other parts of Tamil Nadu for the purpose of enabling further movement of documents, which originated from their sub-franchisees' end. It appeared to the department that the activities of the assessees falls under "Business Auxiliary Services" (BAS) / Business Support Service (BSS). Hence a show cause notice No.68/2008 dt. 03.07.2008 was issued to appellants inter alia, proposing demand of service tax liability on the crossing over charges for the period 10.09.2004 to 30.04.2006 under BAS and for the period 01.05.2005 to 30.09.2007 under BSS along with interest and imposition of penalties. In adju....
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....rendered to any third party and hence, there is no rendering of any Business Supportive Service. Moreover, admittedly, the entire activity is within TPC only. ii) The definition of 'Business Auxiliary Service' cannot be applied in as much as the transaction is between the same network for the completion of the Courier Service and the Service for the self. There is no client and service provider relationship in the present case. Hence service provided by self to self only and the same cannot be exigible to service tax liability. Ld. Advocate placed reliance on Final Order No.42181/2018 dt. 01.08.2018 of CESTAT Chennai in the case of Concord Express Logistics India Pvt. Ltd. iii) The activity of TPC is similar to Co-loader. ....
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....spect of co-loaders. However in the instant case, the assessee were collecting crossing charges from their sub-franchisee agencies located in other parts of Tamil Nadu. He drew our attention to para-6 of the SCN dt. 3.7.2008 giving narration of statement of A. Mohideen Gani, Authorized person of the assessee recorded on 3.10.2007, where he has inter alia stated that crossing over charges are being collected towards logistic support and other support activities provided to the franchisee. For example, a document is booked at Trichy for destination to Mumbai. The said document comes to Chennai and the same is transferred to Mumbai. The charges incurred for transferring document to Mumbai are collected as crossing over charges from the Profess....
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....re or less to cover the expenditure involved in such re-routing by the center which is engaging such re-routing and the nomenclature is referred to as crossing charges; that the rate structure has been prescribed amongst the TPC network. It has also been submitted that as the TPC centers are to be considered as single network, they cannot be brought under the definition of "client", there is no third party relationship to the same network, hence the aspect of both "service" and "client" ceases to exist. 5.2. Discernably, all the franchisees of the assessee operate under the TPC umbrella. In other words, all these outlets will function as defacto TPC offices. There is no allegation that the documents booked by TPC Madurai are not booked i....