Foreign exchange realization requirement defeated rebate claim on courier services for dispatch of free samples abroad.

Rebate of service tax on courier services used to dispatch free samples abroad was not admissible where the notification required realization of foreign exchange from the export. The assessee's claim failed because no evidence of foreign exchange realization was produced, and no material showed that the free samples otherwise satisfied the rebate conditions under Notification No. 41/2007-ST. The absence of the statutory realization requirement was ative, so the rebate claim could not be sustained.

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Issues: Whether rebate of service tax on courier services used for dispatch of free samples abroad was admissible under Notification No. 41/2007-ST dated 06/10/2007 in the absence of realization of foreign exchange.

Analysis: The free samples were not sold, but the only disputed requirement was whether the assessee could claim rebate without showing realization of foreign exchange. The notification required realization of foreign exchange from the export. As no evidence of such realization was produced, and no material was placed to show that the free samples were otherwise eligible for rebate, the claim did not satisfy the statutory mandate.

Conclusion: The rebate was not admissible and the claim failed.

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