Strict compliance with exemption conditions defeats service tax relief where prescribed documents and required return were not properly furnished.

Exemption notifications must be strictly complied with, and the claimant bears the burden of proving fulfilment of every stipulated condition. Here, the appellant failed to produce the prescribed shipping bills, the agreement or contract with the foreign agent, and the original documents evidencing actual commission payment. The failure to file the required return in time and the plea of a merely procedural lapse did not cure the non-compliance. As the mandatory conditions of the service tax exemption were not established, denial of the benefit was justified and the demand confirmation was sustained.

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Issues: Whether the appellant was entitled to exemption from service tax under Notification No. 18/2009-S.T. dated 07.07.2009 despite non-production of the prescribed documents and delayed filing of the required return.

Analysis: The exemption notification had to be construed strictly, and the appellant carried the burden of showing full compliance with its conditions. The record showed that the appellant did not furnish the required shipping bills, the agreement or contract with the foreign agent, and the original documents evidencing actual payment of commission. The plea that the lapse was merely procedural did not cure the failure to satisfy the mandatory conditions of the notification. In an exemption claim, ambiguity or non-compliance cannot be resolved in favour of the claimant.

Conclusion: The appellant was not entitled to the exemption, and the denial of benefit was justified.

Final Conclusion: The demand confirmation was sustained because the exemption conditions were not proved to have been satisfied.

Ratio Decidendi: Exemption notifications must be strictly complied with, and the assessee must establish fulfillment of all stipulated conditions to claim the benefit.

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