Export of services and limitation disputes remanded for fresh adjudication after the order was set aside.

Commission received in foreign exchange for recommending foreign suppliers raised an export-of-services question, but the evidence had not been examined by the lower appellate authority, so the issue was sent back for fresh adjudication by the Original Authority. Limitation was also disputed in relation to the Business Auxiliary Services demand, and because the impugned order recorded no finding on limitation, that issue too required reconsideration. The impugned order was set aside and the matter remanded for de novo decision after granting an opportunity of hearing.

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Issues: (i) Whether commission received in foreign exchange for recommending foreign suppliers amounted to taxable service or was eligible for exemption as export of services. (ii) Whether the demand under the category of Business Auxiliary Services was barred by limitation.

Issue (i): Receipt of commission in foreign exchange for services connected with foreign suppliers raised the question whether the activity was covered by the exemption relating to export of services. The point had not been examined by the lower appellate authority on the evidence then available.

Conclusion: The issue required fresh adjudication by the Original Authority.

Issue (ii): The demand was also assailed on the ground that a substantial part of the tax was time-barred. The impugned order did not record a finding on limitation, and the matter therefore needed reconsideration.

Conclusion: The issue required fresh adjudication by the Original Authority.

Final Conclusion: The impugned order was set aside and the matter was remanded for de novo decision after granting opportunity of hearing.

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