Case Law Details
Yamazen Machinery & Tools India Pvt. Ltd. Vs Union of India and others (Punjab and Haryana High Court)
GST on secondment of expatriate employees by overseas entities: P&H HC remands matter to consider CBIC Circular No. 210/4/2024-GST and CBIC Instruction No. 05/2023-GST
The Petitioner is an Indian subsidiary of a Japanese Multinational. A demand of GST of over Rs. 4 crores along with interest and penalty was confirmed against it; on reverse charge basis; on secondment/deputation of expatriate employees by overseas group entities. The same was challenged in writ petition.
The Hon’ble Punjab and Haryana High Court set aside the order and allowed the writ petition. It remanded the matter to the adjudicating authority to freshly examine the applicability of CBIC Instruction No. 05/2023-GST, Circular No. 210/4/2024-GST, and judicial precedents relied upon by the Assessee. The Revenue accepted that the said Circulars were issued after the impugned order was passed. The Assessee submitted that the Supreme Court ruling in Northern Operating Systems is fact-specific and cannot be mechanically applied.
Argued by Adv. Bharat Raichandani i/b UBR Legal
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
1. Learned counsel for the parties submit that after the passing of the impugned order dated 12.12.2023, circulars dated 13.12.2023 and 26.06.2024 have been issued by the Central Board of Indirect Taxes and Customs which are relevant to the facts of the instant case and therefore, after setting aside the impugned order the matter may be remitted to the adjudicating authority to re-examine the same in the light of the afore circulars.
2. In view of the above consensus, the impugned order dated 12.12.2023 is set aside and the matter is remitted to the adjudicating authority for reexamination, as above.
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