TaxTMI 
TaxTMI 
2025 (5) TMI 1101
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....s of the said agreement, the applicant is providing warranty services to the customers of M/s. MUEGGE GmbH in India. 3. The applicant, vide his aforementioned application has further stated as follows • M/s. MUEGGE GmbH, Germany is the original supplier of industrial microwave; • M/s. MUEGGE GmbH, has provided warranty to buyers against the sale of said microwaves and executed the warranty service agreement with the applicant who will provide the warranty services to its buyers; • That in case of replacement of any parts under warranty they are required to be imported as industrial microwaves was also imported; • the service under the warranty scheme is free of cost and no charges & cor....
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....he same has been re-framed. 6. Personal hearing was granted on 08.04.2025 wherein Shri Rupesh Agashimani, Director, appeared on behalf of the applicant and reiterated the facts as stated in the application. He also submitted a copy of the Dealership and Service Representation agreement between M/s. MUEGGE GmbH and the applicant. The salient features of the agreement are as under viz Dealership and Service Representation Agreement by and between Muegge GmbH Hochstraße 4-6, 64385 Reichelsheim, Germany - hereinafter referred to as "Supplier" - and Enerzi Microwave Systems Pvt. Ltd. Plot No .: 99/107, Survey No .: 343A/335, Udyambag, Belagavi-590008, Karnataka, INDIA - hereinafter referre....
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....to perform any Services on a Contractual Product, which fall or may fall within the scope & period of a contractual warranty granted by Supplier or an Affiliate of Supplier (hereinafter together "Supplier's warranty obligations") or if any customer requests any Services to be performed under Supplier's Warranty Obligations, the Dealer shall immediately inform the Supplier thereof, providing all necessary details for the Supplier to assess, whether or not the requested Service falls within the scope of Supplier's Warranty Obligations. The Dealer shall also inform Supplier about any indications, if any, that any damage may have been caused by reasons that do not fall within the scope of Supplier's warranty obligations, such as but not limited....
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.... (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. 10. To recapitulate, the applicant has entered into a Dealership and Service Representation agreement with M/s. MUEGGE GmbH, Germany, as a consequence of which, they are obliged to provide warranty service to the customers of M/s. MUEGGE GmbH. As a part of the warranty service, the applicant requires parts for the microwaves, which ....
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.... payment in respect of the IGST at the time of import, though the import is in the name of the applicant, as is evident from a sample bill of entry provided with the application. However, as far as availment of ITC as is reflected in the GSTR-2B is concerned, we find that the applicant would not be entitled to avail the same, in view of the following viz • that the IGST is borne by M/s. MUEGGE GmbH; • that credit is not a 'vested right' at the time of receipt of inputs but only on satisfying all 'vesting conditions', including its participation in a taxable outward supply, would it become available; • the applicant while raising invoice on M/s. MUEGGE GmbH, in all likelihood is not charging the price o....