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TMI Blog2019 (11) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Authority of the Advance Ruling held that the transactions covered under the Master Service Agreement (Intercompany Service Agreement) entered between Respondent and NES Abu Dhabi are export of services under the GST Act, 2017 - zero rated supply - determination of the place of supply of goods/services - whether the services being provided by them to their overseas client i.e. M/s NES Abu Dhabi in terms of the subject MSA Agreement will be export or not and whether the same would be zero-rated supply or not? - HELD THAT:- Section 97(2) of the CGST Act, 2017 encompassing the specific questions, which are to be sought under the Advance Ruling, it can decisively be inferred that the questions raised by the Respondent before the Advance Ruling Authority were beyond the scope and jurisdiction of the Advance Ruling, and hence do not warrant any ruling thereon. The Advance Ruling Authority should have refrained from passing any ruling on the above mentioned two questions asked by the Respondent vide the Advance Ruling application filed before the Advance Ruling Authority - since the questions asked by the Appellant are not covered under the scope and jurisdiction of the Advance R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aster Service agreement (hereinafter referred to as MSA) and its schedule in detail. F. The respondents had not submitted the Master Service Agreement in detail but a draft intercompany service agreement (hereinafter referred to as ISA) G. It was therefore submitted before the ARA regarding the questions put forth in the advance ruling applications that since the respondents failed to produce the MSA and also original ISA prayed for rejection of the application. H. The ARA in its order No GST-ARA-52/2018-19/B-16 dated 19.12.2018 = 2019 (3) TMI 594 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA received on 11.03.2019 held that the transaction in question was a zero- rated supply and the supply were held to be the export of service under the GST Act. Grounds of Appeal 1. As per section 182 of the Indian Contract Act, 1872 an agent is a person employed to do any act for another, or to represent another in dealing with the 3rd person, the person for whom such act is done, or who is to be represented is called a principal . 2. In view of above, agent wears two hats. On close examination of the act of an agent, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... together. 4. Due to above said diverged possibilities, this office prayed to the Advance Ruling Authority to enable this office to examine the end to end transactions of the list of services provided in order to ascertain the true nature of the activities of the applicant. 5. However, the Advance Ruling Authority failed to appreciate the vital importance of the said key information about the end to end transactions of the applicant. AR Authority also failed to appreciate that the subject agreement between applicant and M/s. NES Abu Dhabi is a not final agreement but merely draft agreement. 6. In view of the above, it is prayed that applicant should be directed to share the relevant information with the Commissioner including the nature of various transactions, mode of transaction as to whether same are performed on line or manually, step wise and systematically end to end process of all such different types of transactions so that the office may get an opportunity to examine the fact as to whether the applicant is providing the subject service on his own account or merely working as a link between some 3rd parties and M/s. NES Abu Dhabi. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u Dhabi) are associate concerns and had made an INTER COMPANY SERVICE AGREEMENT and the same had been furnished with them , already vide submission dated 03.09.2018, as acknowledged on 04.09.2018, and the same be considered as MSA, for all purposes, and requested to waive the variation in Nomenclature, if any. For the sake of the brevity, the said agreement enclosed. Hence, we reiterate to waive the nomenclature and consider the same as MSA, at this juncture. 10. Further we submit that the transaction between NES India and NES Abu Dhabi wherein involved in the supply of services on its own account. There is only involvement with two Parties, as such. Hence In such a scenario, the supplier will not fall under the ambit of intermediary provided under sub-section (13) of section 2 of the IGST Act, where these services are provided on his own account by such supplier. We rely on Circular No. 107/26/2019-GST, dated the 18th July, 2019, issued by Central Board of Indirect Taxes and Customs, CBIC, where the identical issue considered. 11. In view of the above submissions, the Respondent has pleaded to sustain the ruling given by the Advance Ruling Authority, whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e export of services under the GST Act, 2017 and accordingly held the supply as zero-rated supply in terms of the provision of Section 16 of the IGST Act, 2017. 15. On perusal of the facts and records of the case, placed before us, and considering all the written as well as oral submissions made by both the parties in light of the above stated impugned Advance Ruling, before undertaking the scrutiny of the nature of the activities of the Respondent ingrained under Annexure A to the subject MSA/ICSA Agreement, we seek to examine the scope and the jurisdiction of the Advance Ruling, and Appellate Authority for the Advance Ruling for Goods and Services Tax, which have been explicitly provided under Section 97(2) of the CGST Act, 2017, which is being reproduced herein under for our reference: (2) The question on which the advance ruling is sought under this Act, shall be in respect of, - (a) Classification of any goods or services or both under the Act; (b) Applicability of a notification issued under the provisions of the Act; (c) Determination of time and value of the goods or service or both; (d) Admissibility of inpu ..... 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