Service Tax
TRT-2025-
Cestat New Delhi
Date:-02-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 2 February 2023
Parties: Principal Commissioner Vs M/s Jindal Poly Films Ltd.
Facts –
- The Respondent M/s Jindal Poly Films Ltd., is registered under Service Tax as a provider of various taxable services. The respondent have provided information technology software service to their client located outside India. These services are mainly related to SAP Software.
- After the export of output services, they have filed various rebate claims dated 20.06.2012. After scrutiny as per the taw, the rebate claims have been sanctioned in full. Being aggrieved, the appellant Revenue has filed present appeals on the ground that the service provided by the respondent falls under intermediary service.
Issue –
- Whether the services provided by the respondent falls under ‘Intermediary service’?
Order –
- The Tribunal observed in terms of Circular dated September 20, 2021 that an intermediary essentially arranges or facilitates another supply (the “main supply”) between two or more other persons and, does not himself provide the main supply. It also clarifies that in cases where a person supplies the main supply either fully or partly, on principal to principal basis, the said supply cannot be covered under the scope of “intermediary”. There is, therefore, no illegality in the order dated July 14, 2018 passed by the Commissioner. `
- Further, in the light of the, M/s Verizon Communication India Pvt. Ltd. Vs ACST [2018 (8) GSTL 32 (Del), held that the respondent is not an intermediary. It is seen from a perusal of the aforesaid judgment that Verizon India had entered into a Master Supply Agreement with Verizon US for rendering connectivity services for the purpose of data transfer. Verizon US was engaged in the provision of telecommunication services for which it entered into contracts with the customers located globally. Since Verizon US did not have the capacity to provide such services across the globe, it utilized the services of Verizon India to provide connectivity to its customers.
- Hence the appeals are dismissed.
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