Navitas Eduservices Pvt Ltd Vs Additional Commr(Appeal), Central Tax
Date: September 19, 2023
Subject Matter
Refund application is restored to the Adjudicating Authority for reconsideration
Summary
In summary, the petitioner has filed a petition against an order rejecting their application for a refund of unutilized Input Tax Credit (ITC) on account of exports without tax payment. The rejection was based on the argument that the petitioner's services were classified as those of an intermediary, thus not located in India for tax purposes. The petitioner argues that their services are provided on a principal-to-principal basis and does not involve arranging or facilitating principal services. The court refers to previous decisions to determine the nature of services provided by the petitioner. The orders are set aside, and the petitioner's refund application is restored to the Adjudicating Authority for reconsideration. The court expects the Adjudicating Authority to make a decision within eight weeks. The petition is disposed of, and any pending applications are also disposed of.
1. The petitioner has filed the present petition assailing an Order-in- Appeal dated 11.07.2022 passed by the Appellate Authority, whereby the petitioner’s appeal against an Order-in-Original dated 10.12.2021 was rejected.
2. The petitioner had filed an application for the refund of unutilised Input Tax Credit (ITC) on account of exports without the payment of taxes. The said application was rejected, inter alia, on the ground that the services provided by the petitioner were that of an intermediary and thus, the place of services was not located in India.
3. It is the petitioner’s case that the services provided by it are on a principal-to-principal basis and that it is not involved in either arranging or facilitating the provisions of the principal services.
4. Prima facie, the said controversy is covered by the decisions rendered by this Court in M/s Ernst and Young Limited v. Additional Commissioner, CGST Appeals-II, Delhi & Anr.: W.P (C) 8600/2022, decided on 23.03.2023 and in M/s McDonalds India Pvt. Ltd. v. Additional Commissioner, CGST Appeals - II, Delhi & Anr.: W.P.(C) 11430/2022, decided on 18.05.2023. The exact nature of the services provided are required to be examined in the light of the aforementioned decisions, to ascertain whether the services rendered by the petitioner are for facilitating or for arranging the principal services.
5. In view of the above, the impugned Order-in-Appeal dated 11.07.2022 and the Order-in-Original dated 10.12.2021 are set aside.
6. The petitioner’s application for refund is restored to the Adjudicating Authority for consideration afresh. The Adjudicating Authority shall pass an appropriate order after hearing the parties, as expeditiously as possible and preferably within a period of eight weeks from today.
7. The petition is disposed of. The pending application is also disposed of.