9911796707
TMI Blog2020 (1) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... s GMGTO used the service thereafter can be a separate transaction by the respondents with GMGTO and would need separate scrutiny. In the present proceedings only the service provided by the respondent to GMGTO is the subject matter of scrutiny. Revenue has sought to rely on Rule 2(i) of the Place Of Provision Of Service Rules, 2012 while relying on Rule 2(i)(b)(ii) the revenue ignores the existence of Rule 2(i)(b)(i) while Rule 2(i)(b)(ii) prescribes that the place of use would be relevant; Rule 2(i)(b)(i) prescribes the location of the business established would be relevant - In the instant case, the business establishment of service recipient namely GMGTO is U.S.A and therefore, the location of service recipient would be U.S.A and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces and hence they have not paid any service tax on the said income shown in the above referred ledger ports. From the agreement dated 19.01.2005 between GMIPL and GMGTO it was seen that they had entered into an agreement in respect of providing engineering services as per work plan proposed by the respondent in response to the engineering products identified by Global Motors Engineering Leadership Counsel (GELC) a Company for undertaking of engineering projects of General Motor Corporation. M/s. GMIPL were reimbursed in following terms as per Section 4.2 of the agreement. 7.1 Payment of Engineering Expenses. Subject to the budget limit, GTO will pay ESP an amount equal to the qualifying expenses (the En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of service receiver as under: (i) location of the service receiver means :- (a) Where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained; (b) Whether the recipient of service is not covered under Sub-clause (a): (i) The location of his business establishment; or (ii) Whether services are used at a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or (iii) Where services are used at more than one establishment, whether business or fixed, the estab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in all complete or incomplete deliverables produced by M/s. GMIPL and M/s. GMIPL is not entitled to assign the said deliverable to any other entity without prior permission of M/s. GMGTO (Article 6). In this background the service recipient would be the GMGTO. The SCN alleges that the services are used by the respondent in India. The use of service provided by the respondent to GMGTO is the only issue which can be subject to service tax, if at all. The manner in which M/s GMGTO used the service thereafter can be a separate transaction by the respondents with GMGTO and would need separate scrutiny. In the present proceedings only the service provided by the respondent to GMGTO is the subject matter of scrutiny. Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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