HC set aside GST Order passed without emanating reasons for conclusion

Pacific International Private Limited Vs Commissioner (Appeal) Goods and Service Tax (Orissa High Court)

Orissa High Court held that passing of order by Appellate Authority, by mere affirming to the view expressed in review order, without emanating reasons for the conclusion makes it vulnerable and liable to be impeached. Accordingly, appellate order set aside.

Facts- The petitioner, registered under the Finance Act, 1994 as manufacturer providing technical support and consultancy service to foreign customers, supplied direct services falling under the category ^‘export services’ as enumerated in Rule 6A of the Service Tax Rules, 1994 during financial years 2015-16 and 2016-17. Claiming such services as exempt from the purview of levy of service tax, the petitioner having received consideration during the aforesaid periods filed returns and also filed annual income tax returns.

The Assistant Commissioner of Central Tax, Goods and Services Tax & Central Excise Commissionerate, by Order-in-Original 26.05.2023 dropped proceeding initiated u/s. 73 of the Finance Act, 1994 taking cognizance of the fact that the consideration received on account of rendering technical support and consultancy service to the overseas customers does fall within the connotation of “export of service” as envisaged under Rule 6A of the Service Tax Rules, 1994.