2026 (7) TMI 314

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....se Notice bearing No.76/2024-GST dated 22.07.2024 issued by the 1st respondent herein. 2.The appellant is a Private Limited company and a registered GST tax payer in the State of Tamil Nadu. The appellant is engaged in the business of construction of roads, highways, bridges and other infrastructural projects, industrial structures, hotels and civil works of the Government and private entities. NBCC India Limited, New Delhi, a blue-chip Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs, floated a tender on 19.09.2017, for construction of New Supreme Court Building at Port Louis, Mauritius. The project was a Government of India Grant project to the Mauritius Government. After due process, tender was a....

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....without jurisdiction and beyond the provisions of GST Act. The learned counsel for the appellant submitted that both the service provider, i.e. the appellant and the recipient (NBCC) had registered offices in Mauritius i.e. outside India, for execution of the project and that all transactions including financial ones were carried out only in Mauritius and therefore the territorial laws of India had no application to the project which was executed completely outside India. The learned counsel relied on the judgment of the Telangana High Court in the case of Sri Avantika Contractors (I) Limited vs. Appellate Authority for Advance Ruling (GST) and Others, reported in 2024 (8) TMI 943, to buttress his submission that GST Act was inapplicable to....

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....of the show cause notice, reveals the reason why the respondents considered that the appellants project was taxable under GST. According to the respondents, the materials for the project in Mauritius were procured locally and also through shipments from the appellant's India office. The respondents in their inspection, found that though the receipts and proceeds (consideration for the construction service rendered) from NBCC were accounted by the site office at Mauritius, the revenue and expenditure relating to the site office at Mauritius were merged, consolidated and reported finally under the financials of the appellant's India company. In this factual scenario, we are of the view that these factual aspects have a bearing on the applicab....