Thursday, January 15, 2009


The Tribunal has held that delivery of articles and documents outside India by a courier agency in India shall qualify as export of services, since such international courier service was partly performed in India and partly outside India. In this case, the assessee was engaged in providing international courier services and did not charge service tax on the basis that the services qualified as exports not subject to service tax. It was contended by the assessee that under the Export of Service Rules, 2005,
courier services, if performed partly in India and partly outside, qualified as exports and consequently the assessee did not charge service tax on provision of such international courier services. The Department however contended that transport and delivery of articles and documents abroad could not be held to be service partly rendered in India and partly abroad and on that basis rejected assessee's contentions. The Tribunal, accepting assessee's contentions, held that the assessee was not liable to pay service tax on the international courier service, part of which, in each transaction,
was performed in India and the rest outside India.


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