Intermediary services test clarified: back-office processing for overseas entities was not treated as facilitation of third-party supply.

Routine back-office processing and computer networking work performed on instructions of overseas group entities did not amount to intermediary services. The Tribunal applied the settled test that intermediary status requires actual arranging or facilitating of a supply between two parties, involvement in two simultaneous supplies, a discernible principal-agent relationship, and consideration by way of fee or commission. Mere liaison, coordination, or the presence of more than two entities was held insufficient. On that basis, the services were treated as export of services, and the refund of unutilised credit could not be denied on the ground of intermediary activity.

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Issues: Whether the respondent's services constituted intermediary services so as to deny the benefit of export of services and refund of unutilised credit.

Analysis: The Tribunal followed its earlier decision in the respondent's own case and applied the settled indicators of intermediary activity, namely arrangement or facilitation of a main service between two parties, involvement in two supplies at the same time, a discernible principal-agent relationship, and consideration in the nature of fee or commission. On the facts, the respondent's work was held to be routine back-office processing and computer networking activity carried out on instructions of overseas group entities, without evidence of arranging or facilitating a supply between third parties. Mere involvement of more than two entities or liaison and coordination was not treated as sufficient to convert the activity into intermediary services.

Conclusion: The respondent was not providing intermediary services and the refund claim could not be denied on that ground.

Ratio Decidendi: A service is intermediary only when it actually arranges or facilitates a supply between two parties under a principal-agent arrangement, with the intermediary's own separate agency service identifiable by fee or commission; routine back-office processing on instructions does not satisfy that test.

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