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.
