Sabre Travel Network (India) Pvt Ltd Vs Union of India (Bombay High Court)
In Sabre Travel Network (India) Pvt Ltd vs Union of India, the Bombay High Court considered a writ petition filed under Article 226 of the Constitution challenging multiple aspects of GST law, including the classification of services as “intermediary services” under Section 2(13) of the IGST Act and the constitutional validity and interpretation of Section 13(8)(b) of the IGST Act. The petitioner sought reliefs including a declaration that its services should not be treated as intermediary services, that the relevant statutory provision be read down or declared ultra vires, and that certain advance ruling orders be quashed for lack of jurisdiction and legality.
During the hearing, the petitioner submitted that apart from the advance ruling proceedings, a separate show cause notice had culminated in an adjudication order confirming tax demand on the basis that the services constituted intermediary services. This adjudication order had already been appealed and was pending before the appropriate appellate forum. The petitioner requested that such appellate proceedings be decided independently and without being influenced by the impugned advance ruling appellate order.
The court examined the operative portion of the order passed by the Maharashtra Appellate Authority for Advance Ruling (AAAR), which held that the petitioner’s activities constituted a composite supply with intermediary services as the principal supply. However, the AAAR declined to rule on whether the services qualified as export of services, stating that it lacked jurisdiction to determine the place of supply, which is a prerequisite for deciding export status.
