Service tax rate question on export exemption required referral to a Division Bench for consideration.

The dispute concerned whether the appeal raised a question relating to the rate of service tax because the exemption claimed under Notification No. 41/2007-ST for export transactions directly affected the tax payable. As matters involving a question having relation to the rate of duty or tax are excluded from Single Member Bench consideration under Section 35D(3) of the Central Excise Act, 1944, the matter was directed to be placed before the Division Bench.

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Issues: Whether the appeal involved a question relating to the rate of service tax so as to fall within the exclusion from Single Member Bench jurisdiction and require placement before a Division Bench.

Analysis: The dispute concerned the applicability of Notification No. 41/2007-ST to export transactions, and the exemption claimed under the notification had a direct bearing on the service tax payable. In view of Section 35D(3) of the Central Excise Act, 1944, matters involving determination of a question having a relation to the rate of duty or tax are excluded from Single Member Bench consideration.

Outcome: The matter was directed to be placed before the Division Bench for consideration.

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