Mercedes Benz India Private Ltd. Vs Union of India
Date: February 6, 2024
Subject Matter
Interim Relief Granted in Dispute Over GST on Expatriate Salaries
Summary
The case law discusses the interim relief granted by the Bombay High Court to Mercedes Benz India Private Ltd. in a dispute with the Union of India regarding the imposition of GST on expatriate salaries. The company contested the imposition of GST on the salaries of expatriates seconded to its Indian operations, arguing that the Circular issued by the Central Board of Indirect Taxes and Customs was not considered by the concerned authorities while passing the impugned order. The decision by the Supreme Court in a related case holds significance in the context of the ongoing dispute. The interim relief granted underscores the complexity of tax implications on seconded employees' salaries and highlights the significance of legal interpretation in resolving disputes arising from indirect tax regulations.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. At the request of Mr. Mishra, the learned counsel for the Respondents, stand over to 20th February 2024 to enable Respondents to place on record reply affidavit. Let a copy of the reply affidavit be served on the learned Advocate for the Petitioner well in advance. Till the next date of hearing, impugned order shall remain stayed.
2. The contention of Mr. Shroff, the learned Senior Advocate for the Petitioner, is that the Circular issued by the Central Board of Indirect Taxes and Customs is not considered by Respondent No.3 in passing the impugned order, and, in fact, the Petitioner had placed before the Designated Officer, the comparative position showing as to how the Petitioner would stand independently of the decision by the Supreme Court in the case of C.C., C.E. & S.T. Bangalore (Adjudication) etc. vs. M/s. Northern Operating Systems Pvt. Ltd. in Civil Appeal No. 2289-2293 of 2021 on 19th May 2022.