Tata Asset Management Limited Vs Commissioner of CGST & Central Excise Mumbai South Commissionerate (CESTAT Mumbai)
Tata Asset Management Limited (TAML) contested a service tax demand issued by the Principal Commissioner of CGST & Central Excise, Mumbai South Commissionerate. The department alleged that the services provided by TAML to overseas clients—primarily advisory services in investment management—were subject to service tax. This demand was based on the argument that TAML acted as an intermediary between foreign investors and India-based securities, thus shifting the place of provision of service to India, thereby not qualifying as an export of service.
TAML, on the other hand, argued that the services it provided were non-binding investment advisory services and should qualify as exports under the Service Tax Rules. It emphasized that the advisory services were rendered to entities outside India, with no intermediary relationship between TAML and the clients. TAML’s position was bolstered by its reliance on decisions from the Tribunal in cases like Greater Pacific Capital and Verizon India, where similar services were ruled to qualify as export of service. Furthermore, TAML cited the Central Board of Indirect Taxes and Customs (CBIC) Circular No. 159/15/2021-GST, which clarified that advisory services to foreign entities without a business presence in India are not considered intermediary services.
