Person supplying main supply on principal-to-principal basis cannot be intermediary

Commissioner of Central Tax Vs Singtel Global India Private Limited (CESTAT Delhi)

CESTAT Delhi held that the intermediary does not include the person who supplies such goods or services or both on his own account. Thus, the person supplying the main supply on principal to principal basis cannot come within the ambit of “intermediary”.

Facts-

The issue involved in all these appeals is regarding the refund claimed by SGIPL under rule 5 of the CENVAT Credit Rules 2004 read with the Place of Provision of Service Rules 2012 of the unutilized input service credit of input services used by SGIPL to export telecommunication services to Singapore Telecommunications Ltd. (located in Singapore) in terms of the contract dated 14.07.2011. The order passed by the Commissioner (Appeal’s) while granting the refund, has primarily placed reliance upon the judgment of the Delhi High Court in Verizon Communication India Pvt. Ltd. versus Asstt. Commr. S. T., Delhi-III.

Conclusion-

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