TaxTMI 
TaxTMI 
2021 (8) TMI 781
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....vsari (Unit-3). 2. The applicant has submitted that they have been granted approval from Development Commissioner(KASEZ) to operate as an 100% Export Oriented Unit ('EOU') vide permission dated 17-8-92; that they have been granted permission as per LUT as an 100% EOU to manufacture products such as Easicut diamond impregnated segments, Easicut diamond segmented saw, Continuous type saw, Turbo Type saw, Diamond core bit drills, Aluminium Flange for diamond wheels, Copper washers and blister moulds; that they have been granted license for private bonded warehouse under 100% EOU Scheme bearing License No.2/93 with the additional premises Unit-1 and Unit-3 being included in the said license vide amendment to the license dated 2-12-2010 and the license has been renewed from time to time. 3. The applicant has further submitted that they have a separate R&D unit wherein research and development activities are carried out for their own purposes as well as for other customers; that the applicant is carrying out R&D activities on behalf of entities situated outside India i.e. the applicant is carrying out such R&D activities on the product samples/goods sent by the foreign entities for R&D....
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....eign currency; that the invoices raised by them presently are inclusive of IGST at the rate of 18% on the taxable value of the R&D services provided to the foreign company and are thus making payment of IGST on the R&D services provided to foreign companies. They have submitted illustrative copy of the invoice and bank realization certificate marked as Annexure-3. The applicant is of the view that the services provided by them falls under 'export of service' and is thereby exempted from tax liability under IGST Act, 2017. The applicant wants to know: (i) whether the services provided by the applicant to the entities located outside India is covered under Section 13(2) of the Integrated Goods and Services Tax Act, 2017? Or (ii) Whether the services provided by the applicant is liable to CGST and SGST or IGST or is eligible to be treated as a 'zero rate supply' under Section 16 of the IGST Act, 2017. 6. The applicant has submitted that the questions on Advance Ruling raised by him are covered under sub-sections (2)(e) & (2)(g) of Section 97 of the CGST Act, 2017. The applicant have relied on the judgement of the Hon'ble High Court of Kerala in the case of Sutherland Mortgage Ser....
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....Zone unit. (2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. (3) A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:-- (a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or (b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder." The applicant has stated that based on the above, the export of service shall qualify as 'Zero rated supply' and can be supplied without payment of IGST and even if a supply is in the course of inter-state trade or commerce, the s....
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....IGST Act. Applicant is located in India. (ii) The recipient of service is located outside India. Section 2(105) of CGST Act and Section 2(14) of the IGST Act. The Recipient of service are foreign companies located outside India. (iii) The place of supply of service is outside India. Section 13(2) of the IGST Act. The place of supply is location of recipient, which is foreign company in the present case. (iv) The payment for such service has been received by the supplier of service in convertible foreign exchange. The applicant has received the payment in convertible foreign exchange. (v) The supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in Section 8. Applicant(supplier of service) and Foreign university(recipient of service) are not merely establishment of a distinct person. 7. The applicant has submitted that while the location of the applicant is in India in terms of Section 2(15)(a) of the IGST Act, the recipient of services (i.e. foreign companies) are located outside India in terms of Section 2(14)(d) of the IGST Act. They have stated that a bare perusal of Se....
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...., including that of architects or interior decorators, shall be the place where the immovable property is located or intended to be located. (5) The place of supply of services supplied by way of admission to, or organization of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place where the event is actually held. (6) Where any services referred to in sub-section (3) or sub-section (4) or sub-section (5) is supplied at more than one location, including a location in the taxable territory, its place of supply shall be the location in the taxable territory. (7) Where the services referred to in sub-section (3) or sub-section (4) or sub-section (5) are supplied in more than one State or Union territory, the place of supply of such services shall be taken as being in each of the respective States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the value for services separately collected or determined in terms of the contract or agreement e....
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....all be deemed to be located in the taxable territory, if any two of the following non contradictory conditions are satisfied, namely:-- (a) the location of address presented by the recipient of services through internet is in the taxable territory; (b) the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory; (c) the billing address of the recipient of services is in the taxable territory; (d) the internet protocol address of the device used by the recipient of services is in the taxable territory; (e) the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory; (f) the country code of the subscriber identity module card used by the recipient of services is of taxable territory; (g) the location of the fixed land line through which the service is received by the recipient is in the taxable territory. (13) In order to prevent double taxation or non-taxation of the supply of a service, or for the uniform application of rules, the Government shall have the power to notify any descri....
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....e Tax Rules, 1994, the definition of export of services is applicable thus entitling the assessee to eligibility under Rule 5 of the Cenvat Credit Rules, 2004. 7.3 The applicant has submitted that the aforesaid judgement was relied on in the case of Indeus Life Science Pvt.ltd. vs. CCE, Pune-II, 2019 (370) ELT 678 (Tri-Mumbai) as it was based on identical facts and that it is a settled principle of law that when the service is consumed outside India, tax is not leviable in India. The applicant has placed reliance on the following cases wherein it has been specifically held that even though the test has been conducted in India and the test reports were prepared in India, the service will be treated as export of service as the service is consumed outside India. * Commissioner vs. B.A. Research India ltd. 2010 (18) STR. 439-2009 (11) TMI 213-CESTAT, Ahmedabad. * KSH International pvt.ltd. vs. Commissioner 2010(18) STR.404-2010 (1) TMI 143-CESTAT, Mumbai. * Commissioner of Central Excise, Pune-I vs. Sai Life Sciences 2016(42) STR.882 (Tri-Mum)-2016 (2) TMI 724-CESTAT, Mumbai-Post introduction of Place of Provision of Service Rules 2012. 7.4 The applicant has submitted that in t....
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....ted as a 'zero rated supply' under Section 16 of the Integrated Goods and Services Tax Act, 2017. C. Personal Hearing: 8. Shri Jigar Shah, CA appeared for personal hearing through virtual mode (Video Conferencing) on 30-6-21. On being specifically asked as to whether the applicant was supplying subject services i.e. carrying out R&D activities by only working on the goods provided by the Hilti Aktiengesellschaft and whether they were providing any other independent services besides this, he clarified that the subject services supplied by the applicant was only as a result of analysis carried out on goods provided by the Hilti Aktiengesellschaft, after which a detailed report was submitted to the said recipient. D. FINDINGS: 9. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and GGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 10. We have carefully considered all th....