Order Date – 01 October 2024

Parties: Axa France Vie-India Vs Union of India

Facts –

• The Petitioner, Axa France Vie-India, is a leading multinational insurance company which is also registered as a foreign reinsurance branch with the Insurance Regulatory and Development Authority of India. It also holds a registration issued by the Ministry of Corporate Affairs, Government of India under the category of foreign companies
• The petitioner was issued with a demand for the period 01 July 2017 to 25 July 2018 in respect of non-payment of IGST on reinsurance services.

Issue –

• Whether the amendments related to reinsurance services when offered in relation to government insurance schemes applicable to the period prior to 27 July 2018?

Order –

• The Divisional Bench of Hon’ble High Court observed that a doubt appears to have arisen in light of the amended Serial No.36A while speaking of services by way of reinsurance specifying it to be relatable to Serial Nos. 35 or 36 in the original notification. There was thus, perhaps an inadvertent error in failing to take note of Serial No.40 which too formed part of the original notification dated 28 June 2017.
• The GST Council as well as the Union Government, thus appear to have taken a conscious decision to regularize the period between 01 July 2017 and 26 July 2018.
• Undisputedly, the impugned order relates to that very period. While it is true that on 20 December 2023, when the impugned order came to be passed, these clarifications had not been rendered, undisputedly, the same would not sustain in light of the stand which has been taken by the respondents and is principally noticed hereinabove.
• Hence the writ petition allowed.