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TMI Blog2021 (4) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... advance ruling has been made now changed. In such situation, we hold that ruling passed by the Authority for Advance Ruling, Odisha is not legal proper as per law. Taxability of consultancy service rendered (training conducted in Japan) by the Applicant in Japan - HELD THAT:- In such situation, the place of supply of service is more important. It is already enumerated under sub-section 2 of Section 13 of the IGST Act, 2017 that under such situation place of supply will be location of the recipient of the services. As the recipient of service is M/s. OPTCL in India, then the place of supplied service by M/s. Tokyo Electric Power Company (TEPCO) will be treated as in India. The supplier of service M/s. Tokyo Electric Power Company(TEPCO) is located in Japan, which is non-taxable territory. The recipient of service M/s. Odisha Power Transmission Corporation Limited is located in India, which is the taxable territory and place of supply of service will be in India. Therefore, in our view, the consultancy service rendered by M/s. Tokyo Electric Power Company (TEPCO) to M/s. Odisha Power Transmission Corporation Limited upto dt.04.03.2021 covered under Entry Sl.No.1 of Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Corporation Limited. 2.1. After thoroughly examining the contract details, grounds of appeal the submission made by the Applicant during personal hearing, the Authority for Advance Ruling, Odisha passed the ruling as under:- (i) Supply of service to M/s. OPTCL is not import of service in terms section 2 (11) of the IGST Act. The recipient is not, therefore, liable to pay GST on reverse charge basis in terms of Notification No. 10/2017 -Integrated Tax (Rate) dated 28.06.2017. The Applicant, being the supplied of service in India, is liable to pay tax and therefore, required to take GST registration under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited. (ii) This ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act. (iii) The Applicant, if aggrieved by the ruling given above, may appeal to the Odisha State Appellate Authority for advance ruling under Section 100 of the CGST/OGST Act, 2017 within 30 days from the date of receipt of the advance ruling. 3.0. Aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... warded the application duly filled in Form GST ARA-02 on dated 06.01.2021, which was received by the Appellate Authority for Advance Ruling, Odisha on dt. 11.01.2021. Subsequently, the Applicant has submitted additional grounds of appeal which was received on dt.l2.02.2021. During the Personal Hearing held on 19.02.2021, the authorized representative Mr. Ankit Bhardwaj, C.A., BSR Co LLP, KPMG, Building No.8th Floor, Tower-C, DLF Cyber City, Phase-II, Gurugram-122002 (India) has prayed before the Appellate Authority for Advance Ruling, Odisha to consider the condonation of delay to set aside the ruling of Authority for Advance Ruling, Odisha as the contract between the Applicant OPTCL will be terminated on dt.04.03.2021 instead of August, 2022. Accordingly, the question raised before us on two issues as mentioned below:- (i) Whether the condonation of delay can be allowed, based on the reasons/difficulties submitted by the Applicant? (ii) Whether the ruling of Authority for Advance Ruling, Odisha can be set aside or modified based on changed facts/circumstances as the contract is terminated on dt.04.03.2021? 6.0. The appeal before the Appellate Authority for Advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Technology transfer for the outdoor GIS Operation and Maintenance GIS Operation and Maintenance manual preparation from the point of power utility company's view (ii) M/s. TEPCO would undertake GIS O M training for four OPTCL engineers for one week in Japan during the construction stage of the project. Also, during the construction stage and before the start of operation, TEPCO will demonstrate the O M procedures using the installed GIS. (iii) For the purpose of inspection/review of project facility demonstration of O M procedures, M/s.TEPCO would send Mr .Osamu Matsuzaki (employee of TEPCO) to India for 4 months starting from October, 2021 (out of 52 months period as mentioned in the original agreement). 7.1. During the personal hearing, the authorized representative Mr.Ankit Bhardwaj, C.A., has argued that the project which was scheduled from 13.04.2018 to 12.08.2022, was terminated from dt.04.03.2021. We have gone through the documents submitted by the Applicant to check the veracity of such termination. The condition for termination is mentioned under Para 2.9.1.(f) of the general condition of contract which is reproduced below:- The Clie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been rendered by M/s. Tokyo Electric Power Company (TEPCO) are executed from Japan. Now it is clear that the fact and circumstances based upon which the advance ruling has been made now changed. In such situation, we hold that ruling passed by the Authority for Advance Ruling, Odisha is not legal proper as per law. 8.0. Now the issue boils down to the question of taxability of consultancy service rendered (training conducted in Japan) by the Applicant in Japan. In such situation, the place of supply of service is more important. It is already enumerated under sub-section 2 of Section 13 of the IGST Act, 2017 that under such situation place of supply will be location of the recipient of the services. As the recipient of service is M/s. OPTCL in India, then the place of supplied service by M/s. Tokyo Electric Power Company (TEPCO) will be treated as in India. 8.1. The Applicant in his grounds of appeal submitted on dt.06.01.2021 under Para A. 13 has mentioned that the tax liability lies with the recipient of service as per the provision of entry Sl.No. 1 of Notification No. 10/2017-Integrated Tax(Rate) dated 28.06.2017. The said Notification is reproduced below:- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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