THE PROFESSIONAL COURIERS Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) AFTER examining the records and hearing both sides, I find that the appeal itself can be finally disposed of at this stage in view of the clear provisions of law cited before me by learned Counsel as also a decision of this Tribunal on the same issue. Accordingly, after dispensing with predeposit, I take up the appeal for disposal.

(2.) THE appellants are a 'courier agency' as defined under Section 65(33) of the Finance Act, 1994. During the period from 15.03.2005 to 15.06.2005, they had collected a gross amount of Rs. 32,85,110/ - as consideration for courier service rendered across the borders of India. The lower authorities have demanded service Tax on this amount (along with education cess) and have also imposed penalties on them under various provisions of the Finance Act, 1994. They have taken the view that the nature of courier service cannot be determined or get altered solely on the fact that the person to whom the courier is sent is in India or outside India. It has been held that it is the nature of the service and not the means of delivery of service that determines whether export of taxable service has taken place or not. This decision is under challenge in the present appeal. It was on 15.03.2005 that the Export of Services Rules, 2005 came into force. Rule 3 of the said Rules, as originally enacted, reads as under:

(3.) THE above provision was amended with effect from 16.06.2005 under Notification No. 28/2005 -ST dated 07.06.2005. One of the amendments was insertion of a proviso after the first proviso to Sub -rule (2) of Rule 3. The new proviso reads as under: