Appeal allowed, case remanded for further review. Tribunal emphasizes binding decisions on Revenue. Verification required for demand.

The appeal was allowed, and the case was remanded to the Adjudicating Authority for further consideration. The Tribunal emphasized the binding nature of its decisions on the Revenue, quashing the lower authorities' decision without costs. Verification was deemed necessary to determine if the entire demand fell under the Tribunal's decision and to distinguish between services for overseas and domestic clients. The appellant's argument that payments in foreign currency for disputed services should be considered as export of services was considered valid based on CBEC Circulars and a Larger Bench decision.

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Issues:
Service Tax liability on receipts from overseas customers in foreign currency for "On Line Mail Marketing" service.

Analysis:
The appellant provided "On Line Mail Marketing" services with free and paid schemes. The Department claimed Service Tax on amounts received from overseas customers in foreign currency for the period 2007-08 to 2009-10. The dispute revolved around whether the services qualified as export of services under the Business Auxiliary Service category. The Department demanded Service Tax, interest, and penalties, which were confirmed by lower authorities, leading to the appeal.

The appellant argued that payments in foreign currency for disputed services should be considered as export of services based on CBEC Circulars and a Larger Bench decision. They acknowledged liability for Service Tax on similar services to domestic clients. The Department contended that verification was needed for foreign exchange payments and total amounts received. The Tribunal noted the dispute focused on payments in foreign currency from overseas customers.

The Tribunal referenced a Larger Bench decision in a similar case and emphasized the binding nature of Tribunal decisions on the Revenue. It highlighted that the impugned order could not be sustained based on precedents, quashing it without costs. However, verification was deemed necessary to determine if the entire demand fell under the Tribunal's decision and to distinguish services for overseas and domestic clients. The matter was remanded to the Adjudicating Authority for a fresh decision considering the Tribunal's decision and verifying relevant records.

Ultimately, the appeal was allowed by remanding the case for further consideration by the Adjudicating Authority.

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