BharatTaxGST

M/S Amazon Development Centre INDIA Private Limited vs. Union Of INDIA

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WP/24368/2023HC KarnatakaGSTCNR KAHC01056811202317 September 2024Bench: S.R.KRISHNA KUMAR4 pages
For Petitioner: SRI. G. SHIVADASS, SENIOR COUNSEL FOR SRI. RAVI RAGHAVAN AND SRI.SYED M.PEERAN, ADVOCATESFor Respondent: SRI. AJAY PRABHU, ADVOCATE FOR R-1 SRI. ARAVIND.V. CHAVAN., ADVOCATE FOR R-2 AND R-3

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:38510 WP No. 24368 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 24368 OF 2023 (T-RES) BETWEEN: M/S. AMAZON DEVELOPMENT CENTRE INDIA PRIVATE LIMITED NO.26/1, BRIGADE GATEWAY, WORLD TRADE CENTRE 10TH FLOOR, DR. RAJKUMAR ROAD MALLESHWARAM BANGALORE 560 055. (REP BY SHRI ALOK SUNIL CHANDNA SENIOR MANAGER -TAX) INCORPORATED UNDER THE COMPANIES ACT 1956(NO.1 OF 1956) …PETITIONER (BY SRI. G. SHIVADASS, SENIOR COUNSEL FOR SRI. RAVI RAGHAVAN AND SRI.SYED M.PEERAN, ADVOCATES) AND: 1. UNION OF INDIA REPRESENTED BYI TS UNDER SECRETARY MINISTRY OF FINANCE DEPARTMENT OF REVENUE NORTH BLOCK, NEW DELHI 110 001. 2. PRINCIPAL COMMISSIONER OF CENTRAL TAX NORTH CENTRAL GST COPMMISSIONRATE BENGALURU 560 032. 3. THE ASSISTANT COMMISSIONER OF CENTRAL TAX BENGALURU NORTH COMMISSIONERATE NO. 59 GROUND FLOOR, HMT BHAVAN BELLARY ROAD, BANGALORE 560 032. …RESPONDENTS (BY SRI. AJAY PRABHU, ADVOCATE FOR R-1 SRI. ARAVIND.V. CHAVAN.,ADVOCATE FOR R-2 AND R-3) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2024:KHC:38510 WP No. 24368 of 2023 THIS W.P IS FILED UNDER ARTICLE 226 OF THE CONSTITUITON OF INDIA PRAYING TO QUASH IMPUGNED SHOW CAUSE NOTICE REFERENCE NO.03/2023-24/GST ADC VIDE FORM-GST-DRC-01 DTD 21.09.2023/27.09.2023 ISSUED BY R3 AT ANNEXURE-A FOR THE PERIOD JULY 2017 TO MARCH 2021 & ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:- “ a) Issue a writ in the nature of Certiorari any other appropriate writ or order or direction under Article 226 of the Constitution quashing the impugned Show Cause Notice Reference No. 03/2023-24/GST ADC vide FORM-GST-DRC- 01 dated 21.09.2023/27.09.2023 issued by Respondent No.3 at Annexure-A for the period July 2017 to March 2021; b) Hold that the pre-sale and post-sale services provided by the Petition to its Foreign Affiliates is not in the nature of 'intermediary' under Section 2(13) of the IGST Act and that such service qualifies as 'ex of service' under Section 2(6) of the IGST Act; c) Hold that the Petitioner is not an 'intermediary' in terms of Section of the IGST Act and does not meet the requirements of an intermediary that are laid down in the CBIC Circular dated 20.09.2021; d) pass such further order(s) and other reliefs as the nature and circumstances of the case may require.” NC: 2024:KHC:38510

2.

Heard learned Senior counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3.

The issue involved in the present petition is directly and squarely covered by the judgment of this Court in relation to the very same petitioner in M/s.Amazon Development Centre India Private Limited vs. Additional Commissioner of Central Tax & Another – W.P.No.13007/2024 Dated 17.09.2024, wherein it is held as under:-

29.

In the light of the aforesaid discussion and facts and circumstances narrated supra and the principles laid down in the aforesaid judgments, I am of the considered opinion that the petitioner is not an “intermediary” under Section 2(13) of the IGST Act in terms of the Circular dated 20.09.2021 and the Customer support services provided by the petitioner to foreign affiliates qualify as export of service under Section 2(6) of the IGST Act and consequently, the impugned orders and show cause notice deserve to be quashed.

30.

In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned Order-in-Appeal at Annexure-A dated 04.01.2024 insofar as it relates to rejection of the NC: 2024:KHC:38510 refund claim of the petitioner pertaining to the issue of intermediary / intermediary services is hereby quashed. (iii) The impugned show cause notice at Annexure-M dated 01.09.2022 issued by the respondents seeking recovery of refund sanctioned in relation to customer support services in favour of the petitioner is hereby quashed. (iv) Liberty is reserved in favour of the petitioner to contest the remaining issues before the GST Appellate Tribunal as and when the same is constituted by the Central Government.

4.

In view of the aforesaid facts and circumstances, the present petition also deserves to be allowed and disposed of in terms of the aforesaid judgment.

5.

In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned show cause notice at Annexure-A dated 21/27.09.2023 issued by the 3rd respondent proposing to demand GST on the export of customer support services provided by the petitioner is hereby quashed. (S.R.KRISHNA KUMAR) JUDGE

SV/SRL

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.