TMI Blog2007 (12) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... )(PB), - Dated:- 13-12-2007 - Shri P. K. DAS, Member (J) Sh. Bipin Garg, Adv. For Appellant Sh. S. L.Meena, Authorised Representative(DR) For Respondent [Order]-1. The appellant filed this appeal against rejection of refund claim of Rs.3,64,418/- wrongly paid by them on "Business Auxiliary Services". 2. The relevant facts of the case in brief are that the appellant is the agent of General Motors Corpn. USA (in short "GMC") and had provided services of sourcing them the contract from Indian Railways. Under Rule 3 of Export of Services Rule,2005, export of service is exempted from service tax. The appellant wrongly paid service tax on the commission got from M/s. General Motors Corpn. through Indian Railways and cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.73 shall be paid in equivalent to non-convertible Indian Rs. at the T. T. buying Rate of Exchange prevailing on the date of supply order which is USD 1.00- Rs.43.50 on 31.12.04 to your Indian Agent M/s. N.E.I. Ltd., Jaipur. Agent will submit the bill together with certificate issued by consignee regarding receipt of material in good condition in accordance with the contract and current valid I.T.C.C.". 6. It appears from the Annexure to Purchase Order that necessary foreign exchange would be released to the Indian Railways for payment to GMC. It further appears that the appellant shall raise the bill to the consignee (Indian Railways) at 5% agency commission at USD which shall be paid in equivalent to non-convertible Indian rupees. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant by convertible foreign exchange from USA company through Indian Railways, who paid in Indian Rupees as the same amount of foreign exchange was not released by them. It is well settled that machinery of a statue should be interpreted so as to promote the object and purpose of the scheme. Further, once the legislative intention is properly understood, then the case should be decided in fulfilment with the legislative intention. In the present case, it is revealed from contract that the appellant would be paid USD equipment to non-convertible Indian Rupee at the Rate of Exchange prevailing on the date of supply order. It is noted that the equivalent amount of foreign exchange payable to the appellant was not released to the I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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