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TMI Blog2020 (9) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions which are to be satisfied for a service to be designated as export of service - In the present case, the service provided by the Appellant satisfies all the above mentioned conditions and hence, is an export of service. The Appellant is situated in taxable territory, the recipient of service is located outside India, the service provided by the Appellant does not fall under the negative list, the place of provision of service as per Rule 3 of the POPS Rules, 2012 is outside India, the payment has been received by the Appellant in convertible foreign exchange and the Appellant and the service recipient are separate legal entities. However, for removal of doubt, it is pertinent that the service provided by the Appellant must at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s engaged to carry out the following services: 1. setting up and arranging for the India part of the shoot of the film ; 2. engaging the contributors in accordance with the provisions of Schedule 4 and making payments for and on behalf of the Producere to the Contributors and to such suppliers for the Film in India as shall be specifically authorized by the Producer, provided that any and all such payments are reported to the Producer in accordance with the Indian Production Services Budget on such basis as the Producer shall reasonably require and notify the Service Company in writing ; 3. hiring individuals other than the Contributors for the provision of their services on the Film in the UK, Poland and India ; 4. proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided the services to Shandaar UK Ltd., on a principal-to-principal basis and that the invoices issued by the service providers are in the name of the Appellant and the corresponding payments have also been made by the Appellant. It was further submitted that the services provided by the Appellant do not qualify as intermediary service , as an intermediary is a person who arranges or facilitates a provision of service between two persons without any value addition. The Appellant also submitted that the Adjudicating Authority had incorrectly observed that there was a want of documentary proof in respect of the Appellant s refund claim while all relevant documents evidencing the necessary debit to the Cenvat Credit account of the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant in convertible foreign exchange and the Appellant and the service recipient are separate legal entities. However, for removal of doubt, it is pertinent that the service provided by the Appellant must at the same time also not qualify as intermediary service. 9. In this regard, I find that the aforementioned Guidance Note had clarified the meaning of intermediary as under : Para 5.9.6 what are intermediary services? Generally, an intermediary is a person who arranges or facilitates a supply of goods, or a provision of service, or both, between persons, without material alteration or further processing. Thus, an intermediary is involved with two supplies at any given time: The supply between the principal an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entifiable. 10. This Tribunal, in Commissioner of GST, Gurgaon-II v. Orange Business Solutions Pvt. Ltd. [2019 (27) GSTL 523 (Tri.-Chan.)], has interpreted the aforementioned clause in the Guidance Note as under: From the above Guidance Note of CBEC dated 20th June 2012 and definition of intermediary, the following conclusionscan be drawn: (a) An intermediary arranges or facilities provision of a main service between two or more persons; (b) An intermediary is involved with two supplies at any one time (i) the supply between the principal and the third party; and (ii) the supply of his own service (agency service) to his principal, for which a fee or commission is usually charged; (c) An intermediary cannot influe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia Web Services Pvt. Ltd. [2016-TIOL-08-ARA-ST] also aids the case of the Appellant, wherein it was held that support services from vendors used for providing main service to the service receiver are not intermediary services. 13. On perusal of the agreement between the Appellant and Shandaar UK Ltd., it is evident that the service provided by the Appellant was on a principal to principal basis and that the Appellant had not been appointed as an agent of Shandaar UK Ltd. 14. Further, I find that the Appellant had contended before the First Appellate Authority that the Appellant had duly submitted the Cenvat credit ledger, the statement of Cenvat credit available on the date of filing the refund application and copy of ST-3 return i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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