Held - It is not in dispute that the petitioner has availed the services by way of secondment of employees, which the petitioner has disclosed in his books of accounts and to the knowledge of the respondent authorities. It is only the interpretation given to the exigibility of tax, thereto, which gave rise to a dispute which went on up to the Hon'ble Apex Court. The assessee contending that it is not exigible where.....

Held - Based on the specific facts before it, the Hon’ble Supreme Court in Northern Operating Systems Pvt. Ltd. held that the secondment arrangement amounted to a supply of manpower services by the foreign entity to its Indian subsidiary and was therefore liable to Service Tax under the Reverse Charge Mechanism (RCM). Crucially, the Hon’ble Apex Court clarified that its ruling was fact-.....

Held - As is manifest from a reading of the second Proviso to Rule 28, it becomes apparent that the value declared in invoices generated by an entity receiving the requisite goods or services, in the present context the services from the seconded employees, shall be deemed to be the open market value of the said goods and services.  

Pertinently, a clarification came to be .....

Held - The Tribunal relying on the decision of this Court in the case of “CC, CENST Bangalore (Adjudication) vs. Northern Operating Systems Private Limited” Reported in 2022 (61) GSTL 129 (SC) held that the appellant – herein is obliged to discharge the service tax under the reverse burden mechanism for the services of receipt under the category of “Management Consul.....

Held - As per Para 3.7 of Circular No. 210/4/2024-GST, the CBIC clarifies that where no invoice is raised by the related domestic entity in respect of services rendered by its foreign affiliate, the value of such services would be “deemed” to have been declared as "Nil" and that "Nil" value liable to be treated as the market value for the purposes of the Second Proviso to Rule 28.

TRT-2026-1461

Issue Favourable to Tax Payer ?:- yes