Service tax exemption dispute on receipt classification and turnover threshold sent back for fresh factual verification.

Disputed factual questions on whether the receipts were commission liable to service tax or profit from mobile phone sales, and whether the prior year's taxable turnover stayed within the small scale exemption threshold, required verification from the original records and field-level authority. The existing findings were not considered fit for final affirmation on the available material. The impugned order was set aside and the matter was remanded to the original adjudicating authority for fresh decision after factual verification.

---

---

Issues: Whether the denial of service tax exemption and confirmation of demand, based on disputed factual aspects concerning the nature of receipts and eligibility under the small scale exemption notification, required fresh verification and de novo adjudication.

Analysis: The dispute turned on facts, namely whether the differential receipts represented commission liable to service tax or profit from sale of mobile phones, and whether the value of taxable services in the preceding financial year was within the threshold for exemption under Notification No. 6/2005-ST dated 1.3.2005. As these matters required verification from the original records and the field level authority, the existing findings were not treated as fit for final affirmation on the available material.

Conclusion: The impugned order was set aside and the matter was remanded to the original adjudicating authority for fresh decision after verification of facts. The assessee obtained remand for reconsideration of the disputed issues.

---