Intermediary service exclusion for goods procurement support allowed refund of unutilized Cenvat credit.

Assisting a foreign principal in sourcing and procuring goods from India was not treated as intermediary service because the appellant only facilitated procurement for its principal, with no third party receiving any service in the transaction. The activity was characterised as business support or business auxiliary service, and the CBEC Education Guide specifically excludes intermediary services in respect of goods, including buying agents. On that basis, the refund of unutilized Cenvat credit could not be denied, and the refund claim was admissible.

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Issues: Whether the appellant's activity of assisting a foreign principal in sourcing and procuring goods from India amounted to intermediary services so as to deny refund of unutilized Cenvat credit.

Analysis: The appellant's role was confined to facilitating procurement of goods for the foreign principal. The arrangement was between the appellant and its principal, with no third party receiving any service in the course of the transaction. The activity was in the nature of business support and business auxiliary services, and the CBEC Education Guide specifically excludes intermediary services in respect of goods, including buying agents. Since the activity did not satisfy the ingredients of intermediary services, the refund could not be denied on that ground.

Conclusion: The activity was not intermediary service and the refund claim was admissible.

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