TaxTMI 
TaxTMI 
2025 (7) TMI 464
X X X X Extracts X X X X
X X X X Extracts X X X X
....018/- for the period April 2020 - March 2021. 4. Mr. Shah, learned senior advocate for the Petitioner, at the outset submitted that the impugned order is vitiated by non-application of mind, non-consideration of detailed submissions canvassed by the Petitioner in its replies dated 27 January 2025 and 6 February 2025. He pointed out that the so-called reasoning in the impugned order is a verbatim copy of the statements in the show cause notice dated 28 November 2024 at Exhibit-S. He handed in the chart to demonstrate that the so-called reasoning and findings are nothing but an exercise of cutting and pasting statements from the show cause notice. On this ground, Mr. Shah urged that the impugned order may be quashed and set aside without relegating the Petitioner to avail up the alternate remedy. 5. Ms. Tatake and Ms. Vyas submit that the above ground is not raised in the petition. They submit that the entire reply of the Petitioner has been reproduced and considered in the impugned order. Therefore, they submit that this is not a case of non-application of mind or passing of an unreasoned order. 6. Ms. Tatake and Ms. Vyas submit that the Petitioner has already preferred an ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....und accounting services by computing profit and loss of entire portfolio daily, calculation of periodic Net Asset Value and the allocation of returns to the fund investors for the customers. 2. Processing of derivative transaction by daily reconciliation, trade settlement and collateral management and pricing support: 3. Operations of securities by reconciling the cash balances, trades and positions between the fund manager and prime broker and investigating into differences and resolving them for customers; 4. Provision of flexible risk management analytics and reporting tools for its customers: 5. Control of Date management by maintaining a global centralized security master and creating accounts of securities dealt by customers on the database. 6. Preparation of financial statements i.e. income and expenditure, balance sheet compilation and analysis. 7. Assistance to other stakeholders. Thus, from the above it is presumed/ it appears that the taxpayer (Service Provider) had direct access to the end users of the Contractor (M/s Globeop Financial Services limited, Landon) by way of direct telephonic calls, emails, correspond....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rvice should be outside India. We now discuss Inter-state provisions as well as Intra State provisions under the GST laws as follows: Inter State provisions are contained under section 7 of the Integrated Goods and Services Tax Act, 2017 and since none of the specific provisions are applicable, residuary provision contained under section 7(5)(c) shall be made applicable in the case of intermediary service, which states that inter-state supply of goods or services or both in the taxable territory shall be treated to be a supply of goods or services or both in the course of inter-state trade or commerce, however, the same should not be an intra-state supply and should not be covered elsewhere in section 7 of the IGST Act. Section 8 of the Integrated Goods and Services Tax Act, 2017 deals with the provisions of intra-state. Applying the provisions of section 8(2) which states that 'subject to the provisions of section 12, in case where the location of the supplier and the place of supply of services are in the same state or in the same union territory, the supply of service shall be treated as intra-state supply'. The above provisions of inter-state supply an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n. As per Article/Section 1.3 of the service agreement dated 24/08/2015, the contractor provide to the service provider, free of cost, designated software or hardware computer equipment (the technology) required to undertake the services which are specified to the contractor's clients / project requirement. Such technology shall be returned on completion of the assignment upon request and shall at all times remain the property of the Contractor. As per Section 5.1 of the service agreement dated 24/08/2015, any processes, specification, drawing, sketches, models, products, software, sample, tools, computers or other apparatus, programs, technical, scientific or business information or data, return, or otherwise owned or control by contractor, etc. furnished to or acquired by the service provider shall remain contractor's property. As per the written submission of the taxpayer he has enlisted the activities/services undertaken, viz. 1. Fund accounting services by computing profit and loss of entire portfolio daily, calculation of periodic Net Asset Value and the allocation of returns to the fund investors for the customers. 2. Processing of derivative trans....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 13(8) (b) of the IGST Act, the place of supply of "intermediary services" shall be the location of the supplier of services. Since the place of supply of services, in the instant case is in taxable territory of India, the said intermediary services cannot be treated as an export of services under the provisions of the GST laws. In order to classify as 'export of service', as per section 2(6) of the Integrated Goods and Services Tax Act, 2017, one of the crucial conditions as contained under subclause (iii) is that the place of supply of service should be outside India. We now discuss Inter-state provisions as well as Intra State provisions under the GST laws as follows: - Inter State provisions are contained under section 7 of the Integrated Goods and Services Tax Act, 2017 and since none of the specific provisions are applicable, residuary provision contained under section 7(5)(c) shall be made applicable in the case of intermediary service, which states that inter¬ state supply of goods or services or both in the taxable territory shall be treated to be a supply of goods or services or both in the course of inter-state trade or commerce, however, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....diary services are provided to the recipient located outside India, the inter-State provisions as contained under section 7(5)(c) shall be applicable and, hence, IGST is payable on the above transaction. Supply of services by the applicant will be treated as 'inter-State supply' covered under section 7(5)(c) of the IGST Act and IGST is applicable on the aforesaid transaction, which is required to pay by the taxable person (TP) as per the provision of Law. In view of the above discussion the contention of taxpayer is not accepted & liability is raised. 10. In the case of Piramal Enterprises Limited vs. The State of Maharashtra & Anr. Writ Petition No.2836 of 2021 disposed of on 11 June 2024, a Co-ordinate Bench of this Court, of which one of us (Jitendra Jain, J.) was a party set aside the impugned order after finding that there was no independent application of mind but the contents of a notice issued by the Service Tax Authorities was verbatim copied/borrowed by the VAT authorities. 11. In the above regard, a reference can be made to paragraph 70 of the above decision which reads as follows:- "70. We are also in agreement with the contention as urged o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... quite misconceived and cannot be upheld. 13. Besides the grounds, the adjudicating authority is obliged to issue an order after thoroughly considering all relevant arguments and to state the reasons supporting its decision briefly. Any decision made without considering the main contentions or without providing any supporting reasons would be indicative of a lack of application of mind. Simply cutting and pasting the allegations in the show cause notice or mechanically reciting them verbatim does not inspire confidence that due consideration has been shown to the cause, and the decision is made after its due consideration. Ultimately, these are aspects of natural justice principles that should guide the decision-making process in such cases. As is well settled, in these matters, we focus on the process of decision-making rather than the final outcome. 14. We have also examined the replies filed by the Petitioner to the show cause notice. The Petitioner has put forward several contentions, relying on at least nine precedents they claim support their position, as well as the Board Circular dated 20 September 2021. From the impugned order, we observe that although there may be a....