The Court confirmed that cotton-filled khadi rajai fall outside the exemption in Schedule I

The Tribunal held that reimbursable expenses cannot be included in taxable value under Management Consultancy Services (MCS) and that customised software supply was outside the scope of service tax before May 2008

The bench clarified that the expression "goods which are dispatched" in Sub-Rule 3(a) must be read in the context of Sub-Rule 2(iii), which includes goods "used by him in the manufacture of goods which will in fact be sold by him" outside the State.