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TMI Blog2020 (6) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... me except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to "GST Act" would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT 2.1 The submissions made by the applicant are as under:- Lear India Engineering LLP (hereinafter referred to as "Applicant") is engaged in providing research and development services in respect of various automotive applications to its overseas group companies. 2.2 The subject application is filed in respect of the Technical services provided by Applicant in respect of seating systems and electronic control units to service recipients situated outside India. Applicant entered into a technical assistance agreement with the other Lear entities situated abroad as per which, the Applicant is required to perform activities such as engineering, R&D and technical assistance including advanced product and process development, product design and product engineering. The intangible that are developed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed among multiple entities depending upon their available capacity to ensure that the development of ECU is completed in a defined timeline as per the requirement of the end customers. Out of the entire lifecycle for development of integrated software, initial 5-6 weeks are attributed towards development of function specific software by each Lear entity including the Applicant who are participating in the development project. Upon completion of the function specific development of software, the last 2-3 weeks are allocated for verification of functioning of integrated software and its compatibility with the hardware on which it would be loaded. During the process of development of functional software, post conceptualizing the software. i.e. after completion of writing of the software codes, the Applicant does carry out the testing of the software to verify the accuracy of software. The said testing is done in the computer system only, without the help of any external hardware. Then the function specific software developed in India is uploaded on the server of Lear upon successful testing thereof. Similarly, other Lear entities which are assigned the task to develop software in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23.01.2020 Applicant has submitted that it is withdrawing the first question posed in its Advance Ruling Application i.e. Whether the design & development services provided by Lear India to Lear entities situated abroad would amount to Export of service?, since the same would require a discussion on the place of supply of services, which is outside the purview of this Authority. 2.8 The second question raised is whether the design & Development services provided by Applicant to Lear entities situated aboard would fall under the category of OIDAR services. 2.8.1 The applicant has submitted that the subject services are not in the nature of OIDAR services and would rather qualify as consulting engineer services. Applicant has submitted various reasons in support of their contention that the present services rendered by them is Consulting Engineer Services and not OIDAR. It is also submitted by the applicant that the department had issued a SCN dated 27.08.2018 proposing to classify the services of the Applicant under "On-line database access services" wherein the SCN has alleged that the services provided by the Applicant is bundled service of design, prototype, testing in virtual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the applicant, appeared and requested for admission of their application. Jurisdictional Officer Sh. S.S. Umrani, State Tax Officer (PUN-VAT-C-?05) Pune also appeared. The application was admitted and called for final hearing or. 07.01.2020, Sh. Arpit Pushp Chaturvedi, Advocate, along with Sh. Sandip Sachdeva, Advocate and Sh. Sanjay Bhalerao, applicant appeared and made oral and written submissions. The case was kept reserved for submissions from applicant. The Jurisdictional CfT1cer Sh. S. S. Umrani, State Tax Officer (PUN-VAT-C-905) Pune appeared and made written submissions. Applicant made final written submissions vide letter dated 23.01.2()20 and was called for hearing on 06.02.2010. Sh. Sandip Sachdeva, Advocate appeared and made oral submissions. 05. OBSERVATIONS 5.1 We have gone through the facts of the case, documents on record and submissions made by both, the department as well as the jurisdictional officer. 5.2 A letter dated 23.01.2020 was submitted by applicant, wherein it was requested that they may be allowed to voluntarily withdraw the first question made in the subject application. The request of the applicant to withdraw the first question of application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (3) ..................................... (4) ..................................... (5) ..................................... (6) ..................................... (7) ..................................... 5.6 In view of the provision to Section 98(2) of the CGST Act, 2017, we find that this authority cannot admit the application in respect of this question because the question raised in the application is already pending before the department under the provisions of this Act as is seen from the SCN issued to the applicant on 27.08.2018. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-25/2019-20/B-19 Mumbai, dt. 25-02-2020 For reasons as discussed in the body of the order, the questions are answered thus - Question 1- Whether the design & Development services provided by Lear India to Lear entities situated aboard would amount to Export of service. Answer :- This question has been voluntarily withdrawn by the applicant. Question 2- Whether the design & Development services pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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