Classification of Applicant's Services as Support Services, Not Intermediary Services under Tariff Heading 9985

The back-end support services provided by the applicant to Juniper Inc. are classified as 'Support Services' under Tariff Heading 9985, specifically under Service Code 998599. The services do not qualify as 'Intermediary Services' as the applicant does not act as an intermediary but provides services directly to Juniper Inc. based on guidelines without facilitating transactions between Juniper Inc. and its customers.

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Issues Involved:
1. Classification of back-end support services under the Tariff Heading 9985.
2. Determination of whether the services qualify as Intermediary services.

Issue-wise Detailed Analysis:

1. Classification of Back-End Support Services:
The applicant provides back-end support services to Juniper Networks Inc. under a Trade Compliance Services Agreement. The services include Trade Compliance Operations Management, Manual Documentation Support, and other administrative tasks. The applicant contends that these services should be classified under 'Support Services' as per Tariff Heading 9985 of Notification 11/2017 - Central Tax (Rate) dated 28.06.2017.

The applicant argues that the services provided are similar to those covered under the explanatory notes released by the CBIC, which include document preparation and processing services. The applicant also refers to the pre-GST definition of 'Support Service' under Section 65B(49) of the Finance Act, 1994, which includes infrastructural, operational, administrative, logistic, marketing, or any other support services outsourced by a company.

Upon verification of the Trade Compliance Services Agreement, the authority found that the applicant performs services independently, without interaction with third parties, and provides support services directly to Juniper Inc. The nature of the work includes compliance screening, manual documentation, and administrative support, which align with the description of 'Support Services' under Tariff Heading 9985.

The authority concluded that the services provided by the applicant are not covered under Service Codes 998591 to 998594 and 998596 to 998598. Instead, they fall under Service Code 998599, which includes 'Other support services not specified elsewhere.'

2. Determination of Intermediary Services:
The applicant asserts that the services provided do not qualify as 'Intermediary services' under Section 2(13) of the IGST Act, which defines an intermediary as a person who arranges or facilitates the supply of goods or services between two or more persons but does not include a person who supplies such goods or services on his own account.

The applicant highlights that the services are provided on a principal-to-principal basis directly to Juniper Inc. and not to any third party or customers of Juniper Inc. The applicant does not secure orders or facilitate transactions between Juniper Inc. and its customers. Instead, the applicant performs tasks based on guidelines provided by Juniper Inc. and reports directly to them.

The authority verified the agreement and found that the applicant is engaged in providing services independently without acting as an intermediary. The applicant's role involves performing outsourced processes and updating systems without facilitating any supply of goods or services between Juniper Inc. and its customers.

Based on the nature of the services and the terms of the agreement, the authority concluded that the services provided by the applicant do not qualify as 'Intermediary services.'

Ruling:
1. The back-end support services provided by the applicant to Juniper Inc. are classifiable as 'Support Services' under the Tariff Heading 9985 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017, specifically under Service Code 998599.
2. The services in question are not Intermediary Services.

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