9911796707
TMI Blog2023 (4) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner has statutory right of an appeal to the Appellate Tribunal, the petitioner cannot avail the same as the Appellate Tribunal has not been constituted. 2. In view of the above, this Court considers it apposite to entertain the present petition. 3. The controversy involved in the present petition relates to whether denial of integrated tax is justified on the ground that the petitioner is an intermediary. 4. The petitioner is a company incorporated in India and provides services to an affiliated entity, OHMI Industries Ltd., Japan (hereafter 'OHMI, Japan'). The petitioner had entered into two separate agreements with OHMI Japan, one for rendering Business Support Services and the other for providing Market Research Services. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... located at the place of business of the petitioner. Accordingly, the adjudicating authority held that the services provided by the petitioner were not zero-rated supply and therefore, rejected the petitioner's application for refund. 8. The petitioner preferred an appeal against the order dated 26.11.2019, before the appellate authority confined to the denial of refund of integrated tax on amount received from providing Market Research Services. It is relevant to note that the petitioner did not contest the denial of refund on account of amounts received for providing Business Support Services. The petitioner stated that in terms of the Market Research Agreement, OHMI, Japan had agreed to pay a sum of USD 1,20,000/- per annum as full compe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of mind. As noted above, the appellate authority has failed to notice that the petitioner's appeal was confined only for refund of integrated tax paid on invoices raised in respect of Market Research Services. The order passed by the adjudicating authority was premised on the basis that the petitioner was rendering services directly to the customers of OHMI, Japan. This was in the context of the Business Support Services rendered by the petitioner to OHMI, Japan. 13. There is no dispute as to the nature of services rendered by the petitioner under the Market Research Services Agreement. The counter-affidavit filed by the respondent clearly sets out the scope of work under the Market Research Agreement. The relevant extract from the counter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et Research Services on its own; there is no allegation that it had arranged supply of such services from a third party. 17. It is also relevant to refer to the Circular dated 20.09.2021 (Circular No.159/15/2021-GST) issued by the Central Board of Indirect Taxes. The said circular makes it clear that the concept of intermediary services contemplates minimum of three parties. The said Circular explains as under: "By definition, an intermediary is someone who arranges or facilitates the supplies of goods or services or securities between two or more persons. It is thus a natural corollary that the arrangement requires a minimum of three parties, two of them transacting in the supply of goods or services or securities (the main supply) and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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