Export service exemption depends on substantive proof of export and service use; procedural lapses cannot defeat verified entitlement.

Exemption under Notification No. 18/2009-ST applies where taxable services are used for export of goods, and procedural lapses should not defeat the substantive benefit once export and service utilisation are shown. The entitlement, however, depends on production of adequate documents and records proving that the goods were actually exported and that the disputed services supported that export. As the required material had not been produced before the original authority, the claim required fresh verification. The matter was remanded so the assessee could establish export and utilisation of services before the original authority.

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Issues: Whether exemption under Notification No. 18/2009-ST dated 07.07.2009 could be denied merely for non-compliance with procedural requirements when the substantive condition of export of goods using taxable services is claimed to have been satisfied, and whether the matter required verification of supporting records.

Analysis: The notification was intended to exempt taxable services used for export of goods. Once export of goods and utilisation of the taxable services for such export are established, the substantive benefit of the notification is available and procedural conditions should not defeat that benefit. The entitlement, however, depends on production of adequate documents and records to demonstrate that the goods were actually exported and that the disputed services were used for that purpose. Since the record showed that the required documents had not been produced before the original authority, verification of the claim was necessary.

Conclusion: The assessee was held entitled to the benefit of the notification if it establishes export and utilisation of services before the original authority, and the matter was remanded for fresh verification.

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