9911796707
TMI Blog2018 (9) TMI 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... he place of supply of the Intermediary services shall be the location of the supplier of services . In the present case, the appellant is rendering services on behalf of the OCA and not as an independent Service provider. In terms of the aforesaid agreement/MOU, with the OCA, as applicable during the relevant period, the Appellant assists intended people to become students of OCA clients, i.e. foreign Universities/Institutions and for that purpose provides all the necessary information about the course, course fee, minimum Level of English Language proficiency etc., and assists them in completing Admission application forms and its submission with those foreign universities/institution and the services culminate in India prior to travel abroad by the student - Commission is paid to the OCA in respect of each student enrolled through the recruitment agent on the basis of converted leads i.e. on per student basis who takes admission by the foreign University/Institution. Appellant receives consideration from OCA as per terms of MOU. Since the nature of activities or services undertaken by the appellant are as a facilitator, and hence, the Appellant is to be considered as an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided by the appellant is completed with the grant of admission and issuance of travel visa document and it was only thereafter that the students travelled to foreign country. Since services culminated in India prior to travel abroad by the student the Appellant is working as an agent and arranging services between two persons i.e. the Indian students and the foreign Universities and therefore the services provided by the Appellant to the foreign Universities are classifiable as Intermediary services. 4. Being aggrieved, the appellants filed the appeal against the impugned order on the grounds which are summarised as under : (i) The impugned order is passed without jurisdiction (ii) The impugned order is passed in gross violation of principles of natural justice as opportunity for personal hearing was not accorded. (iii) Service provided by the appellant to OCA qualify as export of services. (iv) Appellant is not an Intermediary for Section 2(13) of the IGST Act and the service provided by Appellant to OCA is a main service itself. No assistance or facilitation by the Appellant as a link between OCA and Indian students for any main service. Consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... students to the foreign university/institution. The Appellant does not appear to do any independent work but provides support services in an integrated manner to assist OCA to develop its brand in India, carry on its operations efficiently and augmenting its business in India. 8. The foreign University/Institutions remit commission to OCA in convertible foreign exchange on the basis of converted leads i.e. on per student basis who take admission in the foreign University/Institution. In terms of aforesaid MOU, the Appellant was engaged by OCA to promote and market OCA brand in India and the services provided by OCA to foreign educational universities/institutions in providing suitable Indian students. 9. Further by virtue of their own admission and in terms of aforesaid MOU, the Appellant was engaged by OCA to promote and market OCA brand in India and the services provided by OCA to foreign educational universities/institutions in providing suitable Indian students. In terms of the aforesaid agreement/MOU as applicable during the relevant period, the Appellant assisted intended people to become students of OCA clients i.e. foreign universities/institutions and for that purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) the provisions of this section shall apply to determine the place of supply of services where the location of the supplier of the services or the recipient of services is outside India. .. (8) the place of supply of the following services shall be the location of the supplier of services namely :- (a) services supplied by a banking Company, or a financial institution ,or a non-banking financial company, to account holders (b) intermediary services Therefore in view of the provisions of Section 13(8)(b) of the IGST Act, the place of supply of service in case of intermediary service is the location of the supplier of services which is India, which is in the taxable territory in the case of Appellant and thus the same is liable to be taxed in the case of the Appellant as services culminate in India prior to travel abroad by the student. 13. Section 2(6) of IGST Act, 2017 defines the Export of services which is reproduced as under : (6) export of services means the supply of any service when, - (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the department has taken contradictory stands with respect to grant of LUT and bond. The appellant applied for export of services without payment of IGST vide prescribed application in RFD-11, dated 31-7-2017 in terms of Section 16(3)(c) of the IGST Act and Notification No. 16/2017-Central Tax, dated 7-7-2017, along with a Bond of INR 25,00,000/-. The Bond application was duly accepted and communicated to the Appellant vide C.No. IV/GST/D-I/Tech/LUT/Oceanic/17, dated 4-8-2017. The appellant pointed out that the Department has accepted the Bond application for export of services but rejected the LUT. The Appellant has failed to go through Circular No. 8/8/2017-GST, dated 4-10-2017 wherein sub-para 2(1) authorizes the jurisdictional Deputy/Assistant Commissioner to accept the LUT/Bond. In exercise of this power the jurisdictional officer is authorized to establish that the services amount to Export or not. Therefore the vested power has been correctly exercised by the jurisdictional officer. 16. The Appellant has cited a catena of case laws and in support of their contention has placed reliance on the case of M/s. Sunrise Immigration Consultants Pvt. Ltd. v. CCE ST - Appeal C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ither the location of supplier or the location of recipient is outside India. Here, default Section 13(2) provides that the place of supply shall be the location of the recipient unless the services falls within the ambit of specified Sections from 13(3) to 13(13) of the IGST Act. In pursuance of Section 13(8)(b)of the IGST Act, 2017, the place of supply of the Intermediary services shall be the location of the supplier of services . 19. In the present case, the appellant is rendering services on behalf of the OCA and not as an independent Service provider. In terms of the aforesaid agreement/MOU, with the OCA, as applicable during the relevant period, the Appellant assists intended people to become students of OCA clients, i.e. foreign Universities/Institutions and for that purpose provides all the necessary information about the course, course fee, minimum Level of English Language proficiency etc., and assists them in completing Admission application forms and its submission with those foreign universities/institution and the services culminate in India prior to travel abroad by the student. Commission is paid to the OCA in respect of each student enrolled throug ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
