Export of services recognised prima facie where Indian activities supported an overseas decision-making structure and foreign exchange receipt.

Services were treated as prima facie exported outside India where the overseas parent retained essential decision-making over fabrics, vendors and service providers, while the applicant's role was limited to performing activities in India and forwarding reports and feedback abroad. Receipt of consideration in foreign exchange further supported export character. On that basis, a prima facie case was made out for waiver of pre-deposit and stay of recovery, with remaining objections left for final hearing.

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Issues: Whether the applicant made out a prima facie case for treating the services as exported outside India so as to justify waiver of pre-deposit and stay of recovery.

Analysis: The agreement indicated that the essential decision-making regarding fabrics, vendors and service providers lay with the overseas parent company. The applicant's role was confined to carrying out activities in India and forwarding feedback and reports to the foreign recipient. The receipt of payment in foreign exchange also supported the claim that the services were exported. The remaining objections were left for consideration at the final hearing.

Outcome: A prima facie case was found in favour of the applicant for waiver of pre-deposit and stay of recovery.

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