Excelpoint Systems (India) Pvt Ltd. Vs Joint Commissioner of Central Tax (Karnataka High Court)
Karnataka High Court held that marketing support services and technical support services provided to foreign company in Singapore is not an intermediary service and the same amounts to export of services. Accordingly, order quashed.
Facts- The present petition is preferred by the petitioner alleging setting aside of order dated 12.06.2024 holding that the Marketing Support Services and Technical Support Services provided by the petitioner to Excel point Singapore under the Agreement dated 01.04.2021 do not amount to intermediary services under Section 2(13) of the IGST Act, and consequently, the said services qualify as export of services under Section 2(6) of the IGST Act. Thus, it is contested that the petitioner is entitled to refund of Rs.18,92,697/- in terms of Refund Application dated 05.01.2023.
Conclusion- Held that a perusal of the material on record comprising of Master Service Agreement dated 01.04.2014 entered into by the petitioner with its foreign / parent company in Singapore and other documents will clearly indicate that petitioner is not an intermediary and the service supplied by the petitioner amount to export of services.
Held that the impugned order of Adjudication Authority deserves to be quashed and the respondents be directed to refund / grant / sanction refund in favour of the petitioner as sought for in the petition and by quashing the demand of IGST made against the petitioner.
