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Case Law Details

Case Name : M/s. Tarsem Mittal & Sons Vs Commissioner of Central Excise (CESTAT Delhi)
Appeal Number : S. T. A. No. 363 of 2009
Date of Judgement/Order : 19/12/2014
Related Assessment Year :

The appellant is an agent of Western Union on whose behalf appellant is disbursing money to the persons directed by Western Union who is located outside India.    Revenue is of the view that as the service has been performed in India therefore, the service is received by Western Union in India.   Therefore appellant is liable to pay service tax under the category of Business  Auxiliary services for the commission received by the appellant for disbursing money to a person directed by Western Union .

Hon’ble Tribunal relied upon its decision given in the case of Paul Merchant in which it held that in such a cases since services although performed in India but the respondent is located outside India and services has been provided on behalf of the recipient located outside India.   Therefore, it falls under the export of services.  In these circumstances, this Tribunal has held that no service tax is payable by the assessee under the category of Business Auxiliary services.

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  1. Ravi kant sharma says:

    we received the fund from MOIA/MEA/Afghan embassy against scholarship program for education provide to foreign student in India. our some client located outside india ie. Nepal/Afghan/Bhutan. we have received the fund (including our charges) from clients and distribution tuition fee to indian institutes.

    kindly help this transactions cover under the above exemption or not.

  2. Rajan Mashelkar says:

    The service referred in the case Law is receiver base service, as such it is export of service, as recipient is located outside India. In your case the service is performance base service, wherein service is performed in India, as such it will not be consider as export of service

  3. Vijay Deshpande says:

    Dear Sir,

    Thanks for the informative Article. I need clarification on the same topic.

    we also do dubbing movies on behalf of Receipient located outside India and deliver the dubbing material ( Service Job) in India on behalf of Receipient located outside India. We get Remittance for the services provided directly credited to our Bank Account through their bankers in Indian Rupees.

    The above Tribunal Provisions are also applicable to us, and falls under the export of Services.and hence no service tax is payable by us?.

    Kindly help us in knowing whether above transaction falls under Export Of Services.


    Vijay Deshpande

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June 2024