Working-capital adjustment determines whether software-services transfer-pricing margins fall within the statutory tolerance range, eliminating any ad...
Permanent establishment deductions upheld for expatriate salaries, direct costs and trading losses, while head-office costs require fresh classificati...
Data transmission equipment classification under CTSH 8517 62 remains distinct from residual classification, with exemption evidence requiring scrutin...
The High Court examined the constitutional validity of exclusion (iii) to the Explanation to Section 17 of the CGST Act regarding the applicability to service providers. The authorities analyzed the matter from the perspective of definitions of 'plant' and machinery, relying on dictionaries, but did not focus on the functionality test. The Supreme Court held that a fact-finding inquiry is necessary in each case, applying the functionality test. As the Petitioner had yet to establish the requisite infrastructure when the Advance Ruling Authorities decided, the High Court remanded the matter to the AAR for a fresh ruling considering the Supreme Court's observations, given the limited scope of judicial review on factual matters unless perversity is demonstrated. The AAR and Appellate Authority's orders were set aside.
The High Court examined the constitutional validity of exclusion (iii) to the Explanation to Section 17 of the CGST Act regarding the applicability to service providers. The authorities analyzed the matter from the perspective of definitions of 'plant' and machinery, relying on dictionaries, but did not focus on the functionality test. The Supreme Court held that a fact-finding inquiry is necessary in each case, applying the functionality test. As the Petitioner had yet to establish the requisite infrastructure when the Advance Ruling Authorities decided, the High Court remanded the matter to the AAR for a fresh ruling considering the Supreme Court's observations, given the limited scope of judicial review on factual matters unless perversity is demonstrated. The AAR and Appellate Authority's orders were set aside.
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